Despite announcing the shutdown of all primary activities at its Cubatao mill in the city of same name in the state of Sao Paulo, Brazil steelmaker Usiminas postponed the dismissal of 4,000 workers at the plant until January 7, 2016.
At that time the company is expected to meet with the local union to discuss how it can mitigate the effects of the massive layoffs.
The mill, which already idled its coking unit, also postponed the shutdown of its sintering unit, blast furnace and steel shop to the end of January, according to a media report. The company’s heavy plate rolling mill will remain active, despite the cut in output. Initially, the company expected to idle its sintering unit, blast furnace and steel shop last week, but after revaluating its options, the company decided to postpone those actions for end-January, a media report noted.
Workers and local union are trying to propose alternatives to the struggling company. “They [Usiminas] are saying the shutdown is going to be provisional, so we’re going to discuss collective vacations and paid licenses with no dismissals,” a union leader said.