SAO PAULO: A steel plant making precision tubing in Brazil's Sao Paulo state closed its doors and laid off 770 workers, who are demanding unpaid wages, union sources said Tuesday.
Workers at the MTP plant in the city of Guarulhos, which manufactures parts for the auto industry, held a vigil outside the site to protest the job cuts and demand back pay and benefits they say the company owes them, union vice-chairman Josinaldo Jose de Barros told AFP.
The union has been told that the company is trying to restructure its debts, "but we believe it is going to close down" for good, de Barros said.
The firm had no comment when questioned by AFP on its future.
MTP has been struggling, along with the entire auto sector, the world's seventh-largest.
The industry last year laid off 12,400 workers after production slumped 15.3 percent.
Brazil's economy as a whole has endured four years of low growth and this year's forecast is for barely zero growth.
But de Barros insisted that that MTP's crisis predates the economic stagnation and is "due to years of poor management."
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