GM shuts down Brazilian plant

AP News
Posted: Jul 24, 2012 11:26 AM
GM shuts down Brazilian plant

SAO PAULO (AP) — The Brazilian subsidiary of General Motors Co. says it has temporarily shut down its eight production units near Sao Paulo amid fears of unspecified action by a local union that warns of imminent mass dismissals.

The auto company says in a statement Tuesday that it closed down its plants and gave paid leave to its more than 7,000 employees "to protect the physical integrity of its workers" during talks about the continued viability of producing four of its models.

The company asked employees to "remain calm and await new instructions."

The Sao Jose dos Campos metalworkers union says in a statement the shutdown is a "lockout" and that it is "clear mass dismissals could be announced at any moment."

Details were not immediately provided by either the union or GM.