GM Gets Brazilian Tax Cut, Then Culls Workforce

Brazilians are unhappy with GM. GM is cutting capacity and jobs at a Brazilian plant. This made the Brazilian government unhappy, because it had cut taxes on domestically made cars, in exchange for manufacturers maintaining the size of their workforce. It also made unions unhappy. They voiced their displeasure on Monday by going on strike, Reuters says. The Metalworkers Union of Sao Jose dos Campos told Reuters that the strike had paralyzed production at the plant near Sao Paulo. A GM executive said it is not true:  "On the first shift, which is the most productive, we had enough workers to continue above half capacity" said Luiz Moan, GM's head of institutional relations in Brazil. Workers are flexing their muscle a day before the union meets with government officials in Brasilia, Brazil's capital, to protest what they say are imminent layoffs. from The Truth About Cars http://www.thetruthaboutcars.com

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