Brazil: Mercedes-Benz freezes pay to save jobs

3,000 surplus jobs kept.  The metalworkers’ union in the ABC area (the name given to the Sao Paulo metropolitan zone), affiliated with the Unified Workers’ Central (CUT), and Mercedez-Benz management signed, on Wednesday, September 12, an agreement to stabilize employment at the Sao Bernardo do Campo truck factory.  To clear up the uncertainty caused by the drop in sales and production, the German company promised not to lay anyone off and to keep its 12,000 employees until January 31, 2013.  In return, the union agreed to a pay freeze over the same period and production halts suspending work for three days with no pay cut.  These measures will save 3,000 jobs considered as “surplus.”  The agreement also extends, until December 17 the temporary contract suspensions, which started on June 18 and affects permanent contracts.  The text was based on workers’ proposals.  For the union, the fact that the management signed this agreement means that production is going to pick up.  New wage negotiations will start in February 2013.
Enjoy this article for free while you’re in your trial period
You have access to our content for 1 month.

until December 17 the temporary contract suspensions, which started on June 18 and affects permanent contracts. The text was based on workers’ proposals. For the union, the fact that the management signed this agreement means that production is going to pick up. New wage negotiations will start in February 2013.

Tax cuts and new funding programs to boost truck sales. Until August, trucks sales in Brazil in 2012 had dropped by 19.3 percent. This can be explained by the decline of the Brazili

Do you have information to share with us?
What you absolutely must read this week
The essential content of the week selected by the editorial team.
See all
Portugal: open consultation on the transposition of the Pay Transparency Directive
The news. On 5 August 2026, the Portuguese government published a document proposing a draft text to transpose the EU Pay Transparency Directive as the basis for a public consultation open until...
EU: the Commission will set up an Expert Group on the impact of AI in the world of work
The news. On 22 July 2026, the European Commission published a progress report on the EU-27’s achievements regarding the objectives of the European Pillar of Social Rights, reinforced by the...
Belgium: toward an additional five days of leave following the birth of a child
The news. On 18 July, the Belgian federal government approved a draft bill introducing an additional five days of leave following the birth of a child. This entitlement would be added to existing...
Germany: a national action plan to strengthen collective bargaining
The news. On 22 July, the German federal government unveiled a national action plan to promote collective bargaining in response to the requirements of the EU minimum wage directive. The directive...
Most viewed articles of the month on mind HR
What readers clicked on the most last month.
What readers clicked on the most last month.
1
EU: the Commission will set up an Expert Group on the impact of AI in the world of work
The news. On 22 July 2026, the European Commission published a progress report on the EU-27’s achievements regarding the objectives of the European Pillar of Social Rights, reinforced by the...