Toyota Brazil Factory Damaged by Storm, Employees Agree to Temporary Layoff Plan

According to foreign media reports, a statement released by local unions in Brazil indicated that after a storm damaged a Toyota factory located in São Paulo state, employees at the Brazilian factory voted overwhelmingly in favor of a temporary layoff plan on September 28.

On September 22, heavy rainfall and strong winds severely damaged Toyota's engine production plant located in Porto Feliz, Brazil. This incident initially led Toyota to not only shut down the engine plant but also suspend production at the Sorocaba plant, which mainly assembles models such as the Yaris, Corolla, and Corolla Cross.

Image Source: Toyota Motor Corporation

The union stated that the purpose of this layoff plan is to safeguard the jobs and income of the factory employees. The statement indicated that the temporary layoffs will begin on October 21, and prior to that, there will be an emergency leave period starting from October 1 for 20 days. Additionally, the layoff arrangement may be extended on a monthly basis, up to a maximum of 150 days.

According to the Metalworkers' Union of Sorocaba and surrounding areas in Brazil, over 96% of Toyota employees who participated in the vote supported the layoff proposal. The union stated that on September 29, a total of 4,492 eligible employees had the right to vote, and 3,709 of them participated in the voting.

The union stated that the key terms negotiated between employees and Toyota are: during the temporary layoffs, all employees with a total monthly income of 10,000 reais (approximately 1,869.30 USD) or less will receive full salary.

Toyota announced on September 28 that it is still assessing the damage to the Felicity Port plant and added that it is expected to take several months for the plant to resume production.

Toyota also stated: "In view of the current situation, the company is looking for alternative engine suppliers from other Toyota subsidiaries in different countries, aiming to resume car production at the Sorocaba and Indaiatuba plants."