Brazilian Toyota employees agree a temporary layoff plan, according to the union

Workers for Toyota (7203.T), opens new tab in Brazil voted overwhelmingly on Sunday to accept a plan for temporary layoffs. This was because of storm damage to one of Toyota’s factories in the state of Sao Paulo, which was reported by the workers union.

On September 22, heavy rain and winds badly damaged Toyota’s Porto Feliz factory, which makes engines. At first, the company had to stop production there and at its Sorocaba factory, which puts together cars like the Yaris, Corolla, and Corolla Cross.

The union said that the plan to lay off workers is meant to protect their jobs and wages at the plant. It said that the layoff time would start on October 21 after a 20-day emergency vacation that started on Wednesday. The arrangement for layoffs could be extended every month for up to 150 days.

Toyota said on Sunday that it is still figuring out how bad the damage is at the Porto Feliz plant and that it will be months before work can start up again there.

“Given this situation, the company is seeking alternative engine suppliers from Toyota units in other countries, with the goal of resuming vehicle production at the Sorocaba and Indaiatuba plants,” it said.

The Metalworkers’ Union of Sorocaba and the surrounding area says that more than 96% of workers who cast votes agreed with the plan to lay off workers. The union said that out of the 4,492 workers who were allowed to vote on Sunday, 3,709 did so.

The union said that one of the most important things that the workers and the company agreed on was that all employees making up to 10,000 reais ($1,869.30) a month would be paid in full during the layoff time.