Brazil Volkwagen Workers End Strike In Sao Jose dos Pinhais

SAO PAULO -(Dow Jones)- Workers at a Volkswagen AG (VOW.XE, VLKAY) plant in Brazil decided Friday to return to work, after more than a month on strike, after securing wage increases.

Employees at the Sao Jose dos Pinhais plant will receive a bonus of 11,500 Brazilian reais ($7,280) this year as well as salary increases of up to 20%, the Union of Metalworkers of Greater Curitiba said on its website.

According to the union, the 39-day work stoppage resulted in 22,990 vehicles not being produced, causing a loss of BRL1.1 billion for the automaker.

The Sao Jose dos Pinhais plant has capacity to produce up to 810 units a day of the Golf, Fox, and CrossFox models. Volkswagen has other four plants in the country, which continued to operate normally during the strike.

Workers will resume production June 13, Volkswagen said in a statement.

“We agreed on issues for this year and 2012 and during this period we hope to develop a new labor relations format at our factory in Sao Jose dos Pinhais,” the company said.

The union was demanding BRL12,000 in profit-sharing for workers, split into two installments of BRL6,000 each.

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