Gerdau, Vale seek alternative measures to preserve jobs

Thursday, 25 June 2015 01:40:11 (GMT+3)   |   Sao Paulo
       

Gerdau and Vale have announced this week that the two companies will temporarily layoff 270 workers.

Steelmaker Gerdau said on Wednesday it will temporarily suspend the contract of 100 employees at its specialty steel unit in the city of Charqueadas, in the state of Rio Grande do Sul, effective on July 13. The layoff will last for a period of five months, the company said.

Gerdau said in a statement that it is “adjusting” production at its Charqueadas mill to the low market demand, especially from the nation’s automotive industry, which is Gerdau’s main specialty steel consumer.

The company denied information from a local union, which said Gerdau was transferring part of its melt shop production in the local mill to other units.

Meanwhile, Vale said that 170 workers will take collective vacations effective on July as a result of the challenging scenario for iron ore. Vale said the 170 workers comprise less than 1 percent of the company’s total workforce in the state of Minas Gerais.