VW logo at the Sao Bernardo do Compo plant
Photo: Julian Stratenschulte/ dpa
Volkswagen is reducing working hours and wages at its plant in Brazil due to supply bottlenecks.
Workers' representatives have approved the German automaker's proposal to cut working hours by 24 percent and wages by 12 percent from July to prevent shutdowns, union representative Wellington Damasceno said.
The agreement will therefore come into force for an unlimited period from July 7th, when employees are to return from a ten-day shutdown.
The measure will be reviewed monthly.
The end depends on the normalization of the supply of auto parts.
Volkswagen's Brazilian branch confirmed to Reuters that it "will take new measures to encourage the workforce at the Sao Bernardo do Campo branch to work more flexibly during the month of July due to the shortage of components".
Volkswagen employs around 8,200 people at the plant near the Brazilian capital of Sao Paulo, 4,500 of whom work on the assembly line.
The company is struggling with a shortage of auto parts and electronic components to assemble its vehicles due to global supply chain issues.