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Volkswagen has applied to put 11,000 staff in Brazil on paid leave should a strike at its main plant there cripple production at other facilities, Europe's biggest carmaker said on Friday.
Workers at the Anchieta plant downed tools on Tuesday to protest against 1,800 layoff notices the company sent out after months of fruitless talks over cost cuts.
Should that labour dispute drag on, it could affect the plants at Taubate, Sao Carlos and Sao Jose, which use parts made in Anchieta, a spokeswoman for VW do Brasil in Sao Bernardo said.
Companies in Brazil can order staff to take paid leave as long as they give unions and authorities at least 15 days advance notice, the spokesman said, adding in this case it would run from September 18 to 27.

Copyright Reuters, 2006

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