Brazilian president says no layoffs for tax cut beneficiaries

Source:Xinhua Published: 2012-7-28 13:49:33

Brazilian President Dilma Rousseff demanded Friday that the industries benefitting from the recently renewed tax cuts do not fire employees.

The government has lately decided to resume a tax cut on domestic appliances and cars, and the president said she also plans to make cuts in other sectors.

"We give fiscal and financial incentives and we want something in return. Not for us, but for the entire country, by maintaining jobs. We give incentives because we ensure jobs," she said.

Though the president did not address anyone specifically, the statement was made only days after an incident involving car manufacturer General Motors (GM), which benefited from the tax cut program.

The company has recently announced plans to deactivate a factory in Sao Jose dos Campos, Sao Paulo state, and started to offer severance packages. That led to conflicts with the trade unions.

On Wednesday, GM put all the factory's employees on leave, citing fears for their safety amid rumors of protests. Should the production line in the Sao Jose dos Campos factory be indeed shut down, some 2,000 employees would lose their jobs.

The Brazilian Finance Ministry has called GM to talk about the situation in Sao Jose dos Campos, and a meeting is expected to take place early next week.

Posted in: Americas

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