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Volkswagen intends to reduce working hours and wages at Brazil plant

Volkswagen AG (VOWG) is considering reduction of working hours and wages at its facility in Sao Bernardo do Campo, Brazil, as it struggles with a shortage of auto parts and electronic components for vehicle assembly.

Earlier this week, the metalworkers union of Sao Bernardo do Campo said it had agreed to a plan for Volkswagen to cut working hours by 24% and paychecks by 12%, beginning in July.

Volkswagen’s Brazilian unit said that it would adopt “new measures to make the workforce more flexible at the Sao Bernardo do Campo unit during the month of July due to lack of components.”

The metalworkers union said the proposed measure would be reassessed every month, while its end would depend on the normalization of auto parts supply.

The German auto maker employs nearly 8,200 people at its Sao Bernardo do Campo facility.

As of 8:30 GMT on Friday the shares of Volkswagen AG were retreating 1.46% (EUR 2.62) on the day, while extending losses from the prior two sessions, to trade at EUR 176.43 in Frankfurt. is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

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