General Motors (GM) reverses decision to lay off 1,245 workers in Brazil

According to a statement released by the Sindmetal metalworkers’ union on Saturday, General Motors (NYSE: GM) has reversed its decision to lay off 1,245 employees at its factories in Sao Jose dos Campos, Sao Caetano do Sul, and Mogi das Cruzes in the state of Sao Paulo.

The announcement follows the dismissal of the U.S. automaker's plea for an injunction to uphold the layoffs by a Brazilian labor court on Friday.

According to the court ruling, “The company will also not be able… to promote any further layoffs of new workers, without the essential prior negotiation,”

The Sindmetal union described the preservation of these jobs as a “historic victory” following a 13-day strike, stating in a release that GM officials will convene with union executives on Monday to formalize the resolution.

"The resumption of jobs is a historic victory, the result of the strong struggle of workers in the three cities. There were 13 days of strike and a lot of unity in defense of jobs," said vice-president of the Metalworkers Union of São José dos Campos, Valmir Mariano.

GM employs 4,000 workers in Sao Jose dos Campos, where it makes engines, gearboxes, the Trailblazer SUV and the S-10 truck.

Shares of GM are trading down 1.83% Monday morning.

By Michael Elkins | [email protected]

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