Steelworkers in Brazil are becoming increasingly fearful of soon ending up jobless as more producers announce production cutbacks and employee dismissals, according to Edmilson Alvarenga, union leader at steelmaker CSN's (NYSE: SID) Volta Redonda operation in Rio de Janeiro state.
"We are indeed worried, there is no question about it, because the crisis is real," Alvarenga told BNamericas. "But at the same time, we remain optimistic that the economy we recover by the end of next year's first quarter."
The biggest employer in Volta Redonda city, CSN has not officially fired anyone yet, both the company and union have confirmed.
"CSN tells us they are doing their best to preserve jobs," said Alvarenga.
Some 2,000 administrative workers at CSN's offices in Volta Redonda are reportedly expected to be on leave in December and return in January.
But according to the company's press office, CSN has yet to make any official decisions on layoffs or forced vacations.
However, Alvarenga said dismissals will not likely occur, taking into account the company's positive results in recent years.
"What we have told steel mills in these last few days is that they have accumulated fortunes in 2007 and 2008," he said. "So, they still have lots of fat to burn and they can make an effort to retain jobs."
Alvarenga also suggested the Brazilian government could drop interest rates and take steps to loosen up credit conditions to boost car and appliance sales, which are among CSN's largest markets.
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