Brazilian steelmaker Companhia Siderurgica Nacional (CSN) reportedly furloughed 1,400 workers at its Presidente Prudente mill, located in the city of Volta Redonda, Rio de Janeiro state, according to a media report by G1. The employees will take a 15-day paid vacation, effective on Thursday.
The measure aims to help CSN cope with Covid-19, which forced steelmakers like Gerdau to shutdown mills in Peru, Argentina and the US. Other companies like flats steelmaker Usiminas have also granted “collective vacations” to works in an attempt to reduce costs, as production levels decline.
The media report said another 600 CSN workers have already been on provisional paid vacations.
The 2,000 employees currently on furlough account for 15 percent of CSN’s total workforce at its Presidente Prudente mill in Volta Redonda city.