CNM Internacional
Confederação Nacional dos Metalúrgicos da CUT ( Brasil) October, 17 2001

Brazil's Carmakers, Metal Workers Closer To Wage Pact

SAO PAULO (Dow Jones)--Carmakers in Brazil's industrial hub of Sao Paulo signaled Tuesday they are willing to give metal workers a pay raise larger than the 5.0% originally proposed, raising hopes that an agreement with labor unions may be reached before the end of the week.
The statement follows a two-hour meeting between carmaker directors and labor leaders Tuesday. Companies agreed to resume annual wage talks after labor unions organized six days of two-hour and daylong walkouts at different plants in the region, slowing production.

Representatives of Volkswagen AG (G.VOW), Toyota Motor Corp. (TM), Ford Motor Co. (F), Scania AB (S.SNA), DaimlerChrysler's (DMX) Mercedes Benz and General Motors Corp. (GM) are scheduled to have another meeting with labor leaders Wednesday at 1600 GMT.

"We've made some progress as the carmakers now appear willing to go beyond their original proposal," said Luiz Marinho, president of the metal workers union in metropolitan Sao Paulo, Sindicato dos Metalurgicos do ABC. Officials with the carmakers declined to comment on the meeting.
Metal workers are seeking a pay raise of at least 7%, which is the rate of inflation tallied over the past 12 months. But carmakers, facing plunging sales amid an economic slowdown, initially proposed a hike that union leaders complain didn't match the rate of inflation.
Contrary to a local media report Tuesday, carmakers didn't use a 2000 appeals court ruling referring to last year's wage review as a bargaining chip during wage talks Tuesday.
The ruling reversed a previous labor court decision that gave Sao Paulo-based metal workers a 10% pay raise last year, reducing the increase to 8% as carmakers had proposed.
The labor union said it will appeal the decision, while Marinho said carmakers didn't bring up the issue during Tuesday's wage talks.

By Adriana Arai, Dow Jones Newswires

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