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Ford's factory closure has cascade effect in Bahia

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Vincent

The contract of electromechanical Vinícius Rabelo to work in the factory of plastic parts for cars of French group Faurecia only lasted hours. In the late afternoon of January 12, still on the first day of his new job, the 23-year-old learned over the phone that he was going to become unemployed soon.

Ford's decision to close its plant in Camaçari, Bahia, at the beginning of the year, took the supply chain by surprise and led to the immediate suspension of contracts with employees. More than two months later, only part of the layoffs was carried out as companies negotiate with labor unions. But the crisis, defined as "irremediable" by residents and government members, is advancing slowly in this town of 304,000 inhabitants.

Instead of the minimum wage, benefits and profit sharing that the factory originally offered, Mr. Rabelo now receives just over R$700 per month as a driver for a ride-hailing app. That is what is left after the expenses with weekly car rental, of R$400, and fuel. The young man's precarious situation is similar to that of thousands who directed their education path specifically to work at the Camaçari automotive hub, now about to be extinct. It is also a preview of what is to come: mass unemployment accompanied by an increase in the number of informal and self-employed people. The town estimates that 12,000 residents will lose their jobs. Ford and its suppliers alone will lay off 7,500 direct employees.

Former senator for Bahia, Waldeck Ornelas had a role in attracting Ford to the region with tax benefits in 2001 and says that the automaker's departure weighs more on Camaçari than any other company, due to the larger number of jobs it offered. Although the Camaçari petrochemical complex, anchored on resin producer Braskem, is responsible for most of the local GDP - about R$24 billion, according to the Brazilian Institute of Geography and Statistics (IBGE) -, the automotive chain employed more. "They were well-paid jobs, the closure of which affects the city's economy," Mr. Ornelas says.

Just over 6,000 of Ford's...

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