Brazilian pellet producer Samarco, a 50/50 joint venture (JV) between Vale and BHP Billiton, reached a deal with Brazil’s labor justice to not make any massive layoffs for a period of four months.
Samarco, which promoted earlier this year a voluntary dismissal program (VDP), should keep the jobs of its 1,800 employees who didn’t take part in the VDP. Samarco’s deal with Brazil’s labor justice is valid until March 31, 2017.
According to Samarco, a massive layoff is the dismissal of more of 1 percent of a company’s workforce each month.
Samarco agreed to search local unions and negotiate any potential dismissals, in an attempt to preserve the employees’ jobs.
Additionally, a federal judge in Brazil agreed to hear a criminal case against four companies, including Samarco, Vale, BHP Billiton and consultant VogBR, as well 22 workers, following the Mariana disaster. While the four companies were accused of environmental crimes in October by prosecutors, the employees were accused of homicide in the disaster.
The court documents said defendants have 30 days to bring their defense.