Brazil bans Ford from carrying out mass layoffs when it closes factories | Instant News


Two Brazilian labor judges have banned US carmaker Ford from carrying out mass layoffs for closing its manufacturing facilities in the country.

The two decisions were issued on Friday evening, according to Brazil’s Agencia news agency.

The ban is in effect until negotiations with the union are successful, according to the report.

Judges at Taubate in Sao Paulo state and in Camacari in Bahia state imposed fines of up to 100,000 reais (about $ 18,626) per employee affected by the violation. Ford can appeal the ban.

The carmaker recently announced it would stop production in Brazil and close its three remaining plants there, after more than 100 years of operation in the country.

Ford ever consecutive losses in recent years, which would lead to a pretax deduction of about $ 4.1 billion, the company said in January.

Chief executive Jim Farley said it was a “very difficult but necessary” decision.

Brazil’s Ministry of Economy said it regretted Ford’s decision, which it said went against the strong recovery seen in most of the country’s industrial sectors.

Thousands of employees were affected, according to reports on Brazil’s G1 news website.

Factories in Camacari and Taubate will close soon, while production at the Troller subsidiary in Horizonte in Ceara state will resume for several months.

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