Press Release
For Immediate Release
05/21/2009
WEG announces cancellation of working hours and wage
reduction agreement
Jaraguá do Sul, May 21, 2009 - WEG SA (Bovespa: WEGE3) announced today that, in
conjunction with the Metal Workers Union of Jaraguá do Sul and region, decided to cancel
the working hours and wages reduction agreement, adopted last April.
The cancelled agreement included approximately 7,000 WEG’s employees and established
25% reduction of working hours and 20% reduction in wages and was valid for 90 days,
until July 20 next. The agreement aimed to mitigate the effects of the deteriorating global
economic conditions in some business segments.
The impacts of the evolution of economic conditions and of the adoption of incentives and
stimuli on the demand of the several product lines are very different, depending on the
particular dynamics of each market. For example, the segment of electric motors for
washing machines responded positively to the reduction of the Tax on Industrialized
Products (IPI) and the pace of production is above the observed in 2008. Approximately
1,000 employees are directly involved in this activity. On the other hand, industrial motors
for general use are still being negatively impacted by the general reduction of investments
in expansion of productive capacity.
WEG will continue to negotiate and expects to soon obtain employee approval for a new
proposal that will allow for production flexibility while maintaining the ability to respond to
changing conditions of the consumer markets. Mr. Harry Schmelzer Junior, WEG’s CEO,
affirmed that "unfortunately we do not have yet a general improvement of the markets. In
the current scenario, we must take advantage of all business opportunities, servicing
customers quickly. The new agreement should reflect this reality.”
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Press Release
For Immediate Release
05/21/2009
For further information, please contact
Investor Relations
Corporate Communications
Luis Fernando Oliveira
+55 (47) 3276-6973
luisfernando@weg.net
Caio Mandolesi
+55 (47) 3276-4295
caio@weg.net
###
About WEG – Founded in 1961, WEG operates mainly on the capital goods segment and is
one of the world’s largest manufacturer of electro-electronic equipment, producing electric
motors, generators, transformers and protection, command and control electric and
electromechanical components.
In Brazil WEG is headquartered and has its main manufacturing units in Jaraguá do Sul,
state of Santa Catarina. In the same state are located several other production sites, in
Blumenau, Guaramirim e Joaçaba. Other plants in Brazil are located in the states of Rio
Grande do Sul (Gravataí), São Paulo (São Bernardo do Campo e Hortolândia) and
Amazonas (Manaus). Outside Brazil WEG has manufacturing units in Argentina, Mexico,
Portugal and China and distribution & commercialization units in the USA, Venezuela,
Colombia, Chile, Germany, England, Belgium, France, Spain, Italy, Sweden, Australia,
Japan, Singapore, India, Russia and UAE.
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