The services arm of flats steelmaker Usiminas, Usiminas Mecânica, plans to lay off most of its Ipatinga workforce by September, according to local union Sindipa.
Sindipa said the Ipatinga plant, in the city of same name in the state of Minas Gerais, has a 740-employee workforce, of which Usiminas would dismiss 700 by September.
Initially, Usiminas Mecanica said it would shut down the Ipatinga plant by September, the union said at the time. However, in a recent meeting with labor prosecutors and the union, Usiminas said it would lay off 700 employees, but would not shut down the plant. The company plans to continue operating with a limited workforce, a media report by Mais Minas said.
Union Sindipa said it has requested the help of labor prosecutors to avoid the massive dismissals.