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GM suspends contracts of 1,500 workers at Brazilian plant

Xinhua, May 18, 2017 Adjust font size:

U.S. automaker General Motors (GM) will temporarily suspend the contracts of 1,500 workers at its plant in Sao Jose dos Campos, near Sao Paulo, union sources announced Wednesday.

According to the Metalworkers' Union of Sao Jose dos Campos, the suspension of the contracts will happen between June 5 and November 4, with the company and the federal government sharing the costs.

However, the union said GM had committed to maintaining all workers in their roles until at least February 2018. The workers affected by the temporary measures will receive training and attend qualification courses during the period.

The GM plant in Sao Jose dos Campos has around 5,000 workers and produces the S10 and Trailblazer SUVs.

In February, the automaker already placed 2,200 staff on forced leave in order to adjust production for current market demand. This has been affected by Brazil's severe economic crisis in recent years.

However, in the first quarter, GM sold 72,400 units in Brazil, 3.6 percent more than in the same period in 2016. Endite