Massive layoffs averted at Usiminas thanks to union agreement

Friday, 29 July 2016 23:56:01 (GMT+3)   |   Sao Paulo
       

A decision from a Brazilian labor court has suspended a massive layoff at flats producer Usiminas.

According to Brazil’s government news agency, Usiminas and two local unions have reached a deal in which 230 laid-off employees can now come back to work. The deal was mediated by Brazil’s Public Ministry of Labour, MPT.

Under the terms of the deal, any massive layoff is forbidden effective on August 1, 2016, for a period of up to six months. Usiminas is subject to a BRL 500,000 indemnity if it doesn’t comply with the terms of the deal.

Individual layoffs should also be limited to the company’s regular turnover, which is 1.6 percent per month. Usiminas should also pay an indemnity to the workers if it dismisses them above the established turnover limit.

Usiminas said the deal aims to preserve 98.4 percent of the company’s workforce at its Cubatao mill in the city of same name in the state of Sao Paulo between August 2016 and January 2017.



Similar articles

Usiminas posts lower net profit for Q1 2024

23 Apr | Steel News

Brazilian HDG export prices decline

17 Apr | Flats and Slab

Brazilian HRC export price trends stable

16 Apr | Flats and Slab

Brazil’s Usiminas to improve efficiency of coke plant No. 2 at Ipatinga

03 Apr | Steel News

Brazil’s Usiminas to cut carbon emissions by 15 percent by 2030

29 Mar | Steel News

Usiminas share price increases sharply in February

01 Mar | Steel News

Prices stable for Brazilian slab export deals

12 Feb | Flats and Slab

Usiminas posts a lower net profit for 2023

09 Feb | Steel News

Usiminas could idle another blast furnace to face imports from China

25 Jan | Steel News

Usiminas to restart its largest blast furnace

17 Jan | Steel News