Due to company’s specific vision to focus on ‘core business’, Mercedes employees fired on large scale

The Sindicato dos Metalúrgicos do Grande ABC union will go on strike next week as the Brazilian authority of Mercedes- Benz announced to fire 3,000 employees. Brazilian workers said in their official declaration that they will perform the strike from 12 September against the company’s decision to lay off 3,600 employees at its truck and bus chassis plant in Brazil's Sao Paulo state.

Mercedes said it is planning to outsource elements from the Brazilian city of Sao Bernado in order to maintain company cost pressure and confront the changing automobile industry. 

Mercedes-Benz said it will outsource the production of front axles and medium transmissions, as well as logistics and maintenance services, with the priority given to local companies. In the meantime, the company is looking forward to focusing on its core business which includes the production of bus chassis and trucks.

Moises Selerges, the president of the union of employees said "Many times in a negotiation process not everything the union wants will prevail, but also not everything the company wants," .

The company will lay off 2,200 employees from the Sao Bernardo plant while 1,400 employees will not have their temporary contracts renewed as of December.