Brazilian pellet producer Samarco, a 50/50 joint venture between Vale and BHP Billiton, has reached an agreement with local unions Metabase and Sindimetal in the states of Minas Gerais and Espirito Santo, respectively, to provisionally lay off 800 workers for three more months.
Samarco said the provisional layoff was approved by the company’s employees and was the best alternative to keep their jobs.
Samarco said the workers’ contracts were provisionally suspended following the “uncertainty” over the company’s restart, which has been postponed due to pending documents.
The current provisional layoff will be extended until October 31 this year, the company added.
Samarco said workers who were laid off on a provisional basis will receive funds from the government and qualification courses. While off, the workers will also receive a wage and existing benefits from Samarco.