São Paulo, Brazil: Toyota workers on strike

A Nova Democracia reported that workers at Toyota in Indaiatuba, São Paulo, have stopped production several times in recent months to protest the closure of the factory in the city. More than 1,500 workers will be laid off or transferred to the company’s assembly plant in Sorocaba, São Paulo.

On May 10, first-shift workers stopped production from 6 a.m. until lunchtime. On May 19, third-shift workers went on strike from 5 p.m. to 10 p.m. At the beginning of negotiations, the proposed compensation was 30 salaries, but after the strikes, Toyota was forced to increase it to 45 salaries. However, the factory will still be closed.

The closure comes after the company announced on March 5th an investment of 11 billion Reais from the federal government. In addition to this amount, the Japanese automaker also received several subsidies from the city of Indaiatuba over the years, such as tax exemptions and reductions in water rates, as well as the release of one billion Reais in credits, according to information from the Metalworkers Union of Campinas and the region.

The amount granted to Toyota is part of the “New PAC” [Growth Acceleration Program] budget in the automotive sector. According to Luiz Inácio himself, 150 million was allocated to the country’s automakers. The robust financing of automakers has occurred despite the violations of workers’ rights by large companies. The amount of money has also not prevented the big bourgeoisie from closing factories throughout São Paulo. In addition to Toyota, Mercedes-Benz and General Motors have also closed factories in the state, despite the funds received from government programs.

The information about the closure expresses once more how the Old Brazilian State is failing in its economic plans and how the “New PAC” is extremely limited and incapable of re-boosting bureaucratic capitalism.