A decision from a Brazilian labor court has suspended a massive layoff at flats producer Usiminas.
According to Brazil’s government news agency, Usiminas and two local unions have reached a deal in which 230 laid-off employees can now come back to work. The deal was mediated by Brazil’s Public Ministry of Labour, MPT.
Under the terms of the deal, any massive layoff is forbidden effective on August 1, 2016, for a period of up to six months. Usiminas is subject to a BRL 500,000 indemnity if it doesn’t comply with the terms of the deal.
Individual layoffs should also be limited to the company’s regular turnover, which is 1.6 percent per month. Usiminas should also pay an indemnity to the workers if it dismisses them above the established turnover limit.
Usiminas said the deal aims to preserve 98.4 percent of the company’s workforce at its Cubatao mill in the city of same name in the state of Sao Paulo between August 2016 and January 2017.