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Strike ends at Renault, Nissan factory in Brazil

Fri Sep 5, 2008 1:43pm EDT

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SAO PAULO, Sept 5 (Reuters) - Workers at a Renault SA (RENA.PA) and Nissan Motor Co Ltd (7201.T) plant in southern Brazil ended a four-day strike on Friday after winning a salary increase.

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But about 4,500 workers at a Volkswagen AG (VOWG.DE) factory in the same state voted to extend a strike now in its fifth day after the German automaker failed to present a new wage offer, the local metalworkers union said.

About 4,000 workers at the Renault and Nissan complex in Parana state were back on the job after accepting a 10.1 percent wage increase, less than the 13 percent raise the Greater Curitiba Metalworkers' Union had demanded.

Volkswagen has also offered a 10 percent wage increase but the workers are holding out for more, the union said.

The strike caused production losses of about 3,200 vehicles at the Renault and Nissan plant and an estimated 4,200 units at the Volkswagen factory, according to the union.

The automakers declined to comment.

Metalworkers in the so-called ABC industrial hub of Sao Paulo, where Volkswagen, Ford (F.N) and Scania (SCVb.ST) have plants, are also threatening to strike on Monday if they don't receive pay raises.

The latest round of wage negotiations between the automakers and the influential ABC Metalworkers' Union ended in a stalemate early on Friday and were expected to resume later in the day, the union said.

Earlier this week, workers at General Motors Corp GM.N, Honda Motor Co Ltd (7267.T), Toyota Motor Corp (7203.T) and Daimler AG's (DAIGn.DE) Mercedes-Benz plants in the interior of Sao Paulo state held a 24-hour strike to demand an 18.83 percent salary increase.

Brazil's auto industry has boomed over the last few years, racking up record profits on the back of an economic revival that has pushed down unemployment and driven up wages. The industry has also benefited from a credit boom that has allowed many Brazilians to buy cars for the first time.

But the push for wage increases comes just as the auto market in Brazil is showing signs of slowing down. Data released on Thursday showed that car and truck sales slumped 15.1 percent in August from July, suggesting that rising interest rates are starting to crimp consumer demand. (Reporting by Alberto Alerigi Jr., Writing by Todd Benson; Editing by Derek Caney)



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