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Toyota Finalizes Emergency Layoff Plan in Brazil After Storm Cripples Engine Plant

The agreement preserves jobs with a phased pause for 5,700 employees as Toyota pursues overseas engines to restart production.

Overview

  • Workers at Sorocaba approved the package with 96.3% of votes and Indaiatuba staff backed it with roughly 99% support, union leaders said.
  • Collective vacation runs October 1–20, followed by a temporary layoff starting October 21 for an initial 60 days, extendable up to 150 days.
  • Employees earning up to R$10,000 will have full pay preserved during the suspension, with benefits and full PLR/PPR maintained.
  • Enrollment in the Bolsa-Qualificação program is required during the layoff, with part of income paid via unemployment insurance (FAT) and the remainder covered by Toyota.
  • Vehicle assembly in Brazil remains paused as damage assessments continue in Porto Feliz, with Toyota saying engine-plant recovery will take months and that it is arranging supply from other countries.