Brazilian mining giant Companhia Vale do Rio Doce (Vale) announced on Friday an agreement reached with eight trade unions on sending 17,800 workers on temporary paid-leave.

Under the agreement, Vale employees will receive half of their regular wages per month plus a compensation of 856 reais (US$368) while on leave.

The company committed to maintaining, until May 31, the jobs of all workers who accept the leave deal.

The company also made a similar call to all of its employees due to the fall in the demand for iron ore at the international market and the consequent need to reduce its production.

Altogether 15 trade unions had received Vale's paid-leave proposal, and two of them have already rejected it. The two unions represent a total of 4,500 Vale workers from Itabira, Ouro Preto and Congonhas, all located in Minas Gerais state in southeastern Brazil.

The rest five unions, which gather 15,500 Vale employees and have yet to decide whether to accept or reject Vale's proposal, are expected to announce their decision in the next few days.

Vale, the world's largest iron ore producer, has a total of 38,000 employees in Brazil, not including its subsidiaries or the outsourcing employees.