Ford reaches agreement with workers at Brazilian plant it plans to shut down

30 April 2019 - 63   - 0


SAO PAULO (Reuters) - Ford Motor Co said on Tuesday it had reached an agreement with the workers’ union at a historic Brazil plant it plans to shutter by the end of the year, paving the way for a friendly shutdown or potential takeover by a local buyer.

The agreement would allow for Ford’s workers to transition from employment with the U.S. automaker to a potential buyer, if a deal closes. The pact includes an exit package for workers, although the details have not been disclosed, as well as psychological support.


Ford had announced earlier this year it would shut its Sao Bernardo do Campo plant, the company's oldest in the country, and exit the heavy truck business in South America, which is based in that factory.

The decision left the future uncertain for some 3,000 workers and triggered long strikes, paralyzing production for weeks at the sprawling plant. It also prompted the governor of the state of Sao Paulo, where Sao Bernardo is located, to act as a broker to try to find a buyer for the plant that might be able to maintain the jobs.

Local manufacturer CAOA, which already produces cars for China’s Chery and Korea’s Hyundai, has said it is in talks to buy the plant. A representative for CAOA said on Tuesday the company had no further updates on the negotiations.

Ford has also announced layoffs at a separate plant, located in Camaçari in the northeast state of Bahia, where the company has said it has 700 workers in excess of its needs.

  Comments - 0

  • Leave a comment

Top Stories

SG Dilrukshi Wickramasinghe withdraws resignation request - sources

Solicitor General Dilrukshi Dias Wickramasinghe has withdrawn her resignation request which had been tendered to contest at the upcoming presidenti...

22 August 2019 - Views : 0

Keith Noyahr's assault probe to end within two months - Police

22 August 2019

Sajith's Matara rally to get underway tomorrow

22 August 2019

Re-scrutinized results of 2018 O/L exams released

22 August 2019



Features & Analysis

Bharatha Natyam Recital at the Swami Vivekananda Cultural Centre

A Bharatha Natyam Recital by Anuka King will take place at the Swami Vivekananda Cultural Centre (SVCC), Hi...

Discovery of exoplanets by Lankan Team

For the first time in the island’s history, a group of Sri Lankans has discovered a new extra-solar planetary s...

'Mega Pride - Pride of the Lion' photographic exhibition

The ‘Mega Pride – Pride of the Lion’ photographic exhibition by the Minister of Megapolis and Weste...

'Strings of Harmony' : Celebrations to mark the 73rd Independence Day of India

‘Strings of Harmony’ – a Santoor Jugalbandi by Pandit Shiv Kumar Sharma and his son Pandit Rahul Sh...