Workers for Toyota (7203.T), opens new tab in Brazil voted overwhelmingly on Sunday to approve a plan for temporary layoffs following storm damage to one of the Japanese carmaker’s factories in the state of Sao Paulo, according to a statement from the workers union.
Heavy rain and winds on September 22 severely damaged Toyota’s Porto Feliz factory, a facility where engines are manufactured, initially forcing the company to halt production there and at its Sorocaba facility, where vehicles including the Yaris, Corolla and Corolla Cross are assembled.
The union said the layoff plan is designed to protect jobs and the incomes of workers at the plant. It noted that the layoff period will begin on October 21 following a 20-day emergency vacation period starting on Wednesday, and that the layoff arrangement may be extended monthly for up to 150 days.
Toyota said on Sunday it continues to assess damage at the Porto Feliz facility, adding that it is expected to be months before work can be resumed at the plant. “Given this situation, the company is seeking alternative engine suppliers from Toyota units in other countries, with the goal of resuming vehicle production at the Sorocaba and Indaiatuba plants,” the company said. According to the Metalworkers’ Union of Sorocaba and vicinity, more than 96% of workers who cast ballots voted to approve the layoff proposal. Of the 4,492 workers eligible to vote on Sunday, 3,709 participated in the vote, the union said.
One of the key points negotiated by the workers and the company was a guarantee that all employees earning a gross salary of up to 10,000 reais ($1,869.30) per month would be paid in full during the layoff period, the union said.