Brazilian steelmaker Gerdau could temporarily lay off workers at its Charqueadas mill, in the state of Rio Grande do Sul.
According to media reports, the company is in talks with a local union to approve the layoffs. Brazilian labor laws require companies to reach formal agreements with local union, in order to proceed with layoffs.
Gerdau’s first proposal to temporarily layoff 70 workers at the steel mill for a period of up to five months was rejected the local union.
According to the local metals workers union, the deal didn’t offer a guarantee of stability for the company’s employees.
Gerdau’s Charqueadas plant manufactures steel for the automotive sector, which has been struggling to keep jobs as a result of lower demand and sales.
In a statement, Gerdau said it has no plans in shutting down the plant. It also said it is still negotiating with the local union to temporarily layoff the workers. Gerdau said such a measure would prevent jobs.