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Toyota Workers Approve Layoff Plan After Storm Shuts Brazil Engine Plant

The vote follows a windstorm that crippled the Porto Feliz engine hub, leaving the company without a restart date.

Overview

  • Workers at Toyota’s Sorocaba plant approved the layoff proposal with 96.28% support, with 3,709 of 4,492 eligible employees voting.
  • Emergency collective vacations run from October 1 to 20, followed by a temporary layoff starting October 21 with possible monthly extensions up to 150 days.
  • Employees earning up to R$10,000 will have 100% of net pay preserved during the layoff, higher salaries will be scaled, and benefits and full profit-sharing will be maintained.
  • During the suspension, workers must enroll in bolsa-qualificação training, with part of income paid via federal unemployment insurance financed by the FAT and the remainder by Toyota.
  • Toyota’s national assembly is paused because Porto Feliz supplies engines to Sorocaba and Indaiatuba lines that build models such as Corolla and Yaris Cross, affecting about 5,700 employees.