Toyota Brazil Workers Back Layoffs as Storm Halts Engine Output

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Toyota's Brazilian workforce overwhelmingly greenlit a temporary layoff scheme Sunday, to protect jobs and paychecks after fierce storms gutted an engine plant last week, forcing production halts that could drag on for months across two key facilities.

The Metalworkers’ Union of Sorocaba and Region reported 96 percent approval from 3,709 of 4,492 eligible voters at the Porto Feliz engine factory, hit hard by September 22 gales and rains that wrecked infrastructure and idled assembly lines for models like the Yaris and Corolla Cross at nearby Sorocaba.

Layoffs kick in October 21, post a 20-day emergency break starting Wednesday, with potential monthly extensions up to 150 days to weather the downtime. Union reps hailed the deal's safeguards: full salaries preserved for those grossing up to 10,000 reais ($1,869) monthly, a buffer against the limbo.

Toyota, assessing the wreckage, eyes imported engines from global units to restart vehicle builds at Sorocaba and Indaiatuba, but concedes full recovery at Porto Feliz stretches into months— a timeline that underscores supply chain strains in Latin America's auto hub.

The nod reflects a tense balance in Brazil's industrial heartland, where storm scars compound economic headwinds like inflation and currency wobbles. Workers, facing uncertainty, opted for stability over strife, a move that could ripple to suppliers and Toyota's regional output of over 200,000 units yearly.

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