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Mercedes-Benz predicts mass layoffs in Brazil; know why

The Mercedes-Benz workers in São Bernardo do Campo made a decision: to stop their activities at the factory right after they had accomplished an assembly on the afternoon of Thursday, 8. They had the intention of not going to work in order to protest the decision that was taken by the truck and bus maker to dismiss approximately 3,600 employees.

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This number of people who are about to be cut concerns 38% of the workforce in the production and administrative areas. In addition to the 35%, if we count executives and interns. This was informed by the automaker's team, which made the decision to outsource the activities of the logistics, maintenance, manufacture and assembly of front axles and medium transmission, tooling and also laboratories.

This decision, in principle, should directly impact 2,200 workers immediately. The company will also not renew the contracts for 1,400 employees that are due to expire at the end of November.

Mercedes-Benz predicts a large number of layoffs

The German automaker intends to increase its focus on the part of its main activity, which would be the manufacture of trucks and bus chassis but also want to dedicate themselves to the development of technologies and services that will revolutionize the future. The meeting held was organized by Moisés Selerges, the president of the ABC metallurgist union and also a Mercedes employee.

Employees intended to assess on Monday, 12, whether or not they would return to work. Otherwise, they would choose to wait for the result of the meeting between representatives of the entity and also of the company.

In a note that was released after the workers had taken this decision, Mercedes-Benz said it had already started negotiations with the union to discuss some measures regarding the plan to transform truck and bus operations in our country. The “urgent need to restructure areas and, consequently, guarantee the long-term sustainability of business in the country” was also reaffirmed.

The group also said that it will be looking for some companies and suppliers so that they can absorb significantly the volumes of business, materials and also services, giving priority to the regions of São Paulo and ABC too. That way, it may be possible to rescue those who are fired.

On the first Tuesday of the month, the company also said that the automotive market is becoming more and more dynamic. The competitiveness that exists in the sector will be growing more and more because of the transformations that take place in the passage of technologies traditional to new forms of propulsion such as, for example, electric vehicles. Because of this form of vision and also the increased cost pressure generated, the company said that this restructuring is really necessary.

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