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Volkswagen to cut working hours and wages in Brazil

Volkswagen AG is set to reduce working hours and wages at its Sao Bernardo do Campo factory located in Brazil as it deals with a lack of auto parts and electronic components to assemble its automobiles.

The metalworkers union of Sao Bernardo do Campo has agreed to a plan for the automaker to cut working hours by 24% and paychecks by 12% starting from July.

According to the union, the arrangement will take effect starting from July 7, when workers are set to get back following a 10-day shutdown.

The union said the measure would be reviewed on a monthly basis and that its end would depend on the normalization of the supply of automobile parts.

Volkswagen has almost 8,200 workers at its Sao Bernardo do Campo plant close to Sao Paulo, with 4,500 of them working on the assembly line.

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