Brazil car plants get ‘popcorn’ treatment

Motor industry workers have gone on strike at a number of plants in Brazil over demands for a wage increase in line with inflation.

About 100 000 motor industry workers have gone on strike at a number of plants in Brazil over demands for a wage increase in line with inflation.

The Sao Paulo Metal Workers Union said the strike would move from plant to plant each day, and had started with Volkswagen’s factory.

"We are going to carry out an intelligent strike," said Luiz Marinho, president of the Metal Workers Union, in a statement. "It’ll be like popcorn. People know it is going to explode but they don’t know at what moment or where."

The workers want a wage hike matching inflation and the renewal of fringe benefits. They rejected an offer of a pay increase equal to 70 per cent of inflation. They also want two-year contracts. About 70 per cent of car production is in Sao Paulo.

The motor industry in Brazil saw September car sales fall by 23 per cent from the same period last year, and by 25 per cent from August. It is the worst month since January last year. The manufacturers recently began cutting production and retrenching workers.