Following the embargo on Alunorte's operations in Barcarena, the Paragominas bauxite mine has operated at 50 percent of its capacity since March 2018. Collective vacations have so far been used to mitigate the reduced activities at the mine.
As the use of collective vacations has been exhausted, temporarily suspending work contracts was necessary. The measure was approved at a meeting of the Worker's Trade Union of the Extractive Industries in Amapá and Pará (STIEAPA), aiming at maintaining the jobs long term.
The temporary suspension of the employment contract is provided for in Brazilian labor legislation, and respects the collective agreement established with the company's employees. According to the legislation, the Paragominas bauxite mine will offer a skills development program to the affected employees during the suspension period.
The Paragominas mine will in the coming weeks also reduce the number of contractors by 175. Part of the activities carried out by contractors will instead be performed by Paragominas employees.