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Ford Resolves Conflict in Brazil

August 3, 1999

SAO PAULO, Brazil (AP) _ The Brazilian subsidiary of Ford Motor Company reached an agreement Monday with labor leaders, ending a 10-day strike that paralyzed the company’s truck plant in Sao Paulo.

Labor leaders, aware of Ford’s plan to move its truck-making facilities out of a working-class district in Sao Paulo, demanded a commitment that no one be fired for a year and a half.

Ford responded with an offer of job stability through the end of the year.

After seven hours of negotiation, the stalemate was broken when both sides compromised on a one-year guarantee.

``The strike is over,″ said Paulo Pereira da Silva, president of the Sao Paulo Metalworkers Union. ``Production resumes tomorrow.″

Da Silva said the union will have a say as to where, when and how the factory will be transferred and has received guarantees that workers from the factory will be employed at the new facilities.

Ford’s press office confirmed da Silva’s comments.

The factory’s nearly 1,500 workers went on strike July 22 after a local newspaper reported Ford would shut down the plant and transfer it to the northeastern state of Bahia. The strike stopped daily production of 120 trucks.

Ford said it was not planning to move the plant to Bahia, but rather to one of two other factories it has on the outskirts of Sao Paulo.

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