Volkswagen gives up the suspension of contracts in Taubaté – 07/23/2023 – Market

Volkswagen announced this Sunday (23) that it has given up temporarily suspending the employment contracts of 800 employees at the factory in Taubaté (SP). The reason, according to a note sent by the company, is the good sales performance of the Polo.

The automaker would start a lay-off at the Taubaté unit from August 1st. In this model, contracts are temporarily suspended and workers have part of their wages paid by the company, in addition to help from the federal government. The stop would be two months.

“Due to the positive performance of the Polo model, Volkswagen do Brasil decided to adjust the flexibility measures for the plant in Taubaté (SP), canceling the lay-off scheduled to start on August 1st, lasting two months for one production shift, and applying collective vacations of ten days for the unit’s two shifts, starting on 7/31”, says a note.

According to the company, in Paraná, the lay-off is maintained. The ABC and São Carlos (SP) units remain operating normally. “The factory in São José dos Pinhais (PR) has been in layoff since June 5. The Anchieta units, in São Bernardo do Campo (SP), and São Carlos (SP – engines) are operating normally”, says the text.

The measure had been announced about a week ago, shortly after the end of the subsidy program for the sale of cars by the federal government. According to the automaker, the flexibilization of contracts is foreseen in a collective agreement signed between the union and employees.

From January to June, the Volkswagen Polo accumulates sales of 37.7 thousand units, occupying the second position in the car segment, according to data from Fenabrave (Fenabrave National Federation Distribution Vehicles Motor). The model is the second most sold year-to-date in the segment, behind General Motors’ Onix, which had 44,100 units registered.

The Taubaté factory is responsible for producing the Polo Track and the Novo Polo. The vehicle was one of the few to record high sales in its segment between April and May, with growth of 25.9% over April.

Sales of new vehicles dropped after the announcement of the government’s program, while details were not known. Registrations fell by around 30% from May 25 to 30, compared to the same period in April, according to data obtained by Sheet.

How the layoff works

The lay-off is a temporary suspension of employment contracts, provided for in the CLT (Consolidation of Labor Laws). In this type of action, which can only be triggered in times of economic crisis in the sector, workers stay at home and have their wages partly funded by the company, partly by the government.

In addition, the lay-off needs to be approved at a workers’ assembly, in negotiation with employees, the union and the company. The measure can be applied for a period ranging from two to five months.

During the period, workers maintain benefits such as a health plan and must participate in courses funded by the company or with support from the FAT (Fundo de Amparo ao Trabalhador).

Car production rises most in nine months

After two months of decline, the industrial production of motor vehicles, trailers and bodies grew 7.4% between May and April this year, according to the most recent data released by the IBGE (Brazilian Institute of Geography and Statistics).

It is the highest increase in the sector in nine months, since August 2022, when it was 13.2%. The result is linked to the return of production at automakers, with the end of the Covid-19 pandemic and the federal program of discounts for the purchase of popular cars.