By Gabriel Araujo and Alberto Alerigi SAO PAULO (Reuters) – A union representing metalworkers at Brazilian planemaker Embraer announced on Wednesday a strike for an indefinite period demanding higher salaries, but the company said its plants in the country were operating normally. The metalworkers union from Sao Jose dos Campos, where Embraer’s headquarters and main […]
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Embraer says Brazil plants operating normally as metalworkers call strike
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By Gabriel Araujo and Alberto Alerigi
SAO PAULO (Reuters) – A union representing metalworkers at Brazilian planemaker Embraer announced on Wednesday a strike for an indefinite period demanding higher salaries, but the company said its plants in the country were operating normally.
The metalworkers union from Sao Jose dos Campos, where Embraer’s headquarters and main production lines for commercial jets are located, said they went on strike due to the firm’s “refusal to apply a real increase to wages”.
The move comes as the company seeks to boost production to meet its annual goals, as the second half is usually busier for planemakers.
Embraer had delivered 26 commercial jets by end-June, but has a full-year target of 77 to 85 deliveries.
The union said the strike had halted output, even though the company denied it had disrupted operations.
Shares in the planemaker settled down 0.6% in Sao Paulo trading, while benchmark stock index Bovespa rose 1%.
According to the Sindmetal union, Fiesp – the entity representing the aerospace sector – proposed in negotiations a salary adjustment only based on inflation and a reduction in job stability for injured workers.
A first proposal for a 5.05% wage increase was rejected last week, and a strike notice was approved as workers demanded an 11% rise, according to the union. On Wednesday, a new proposal for a 5.5% hike was also rejected, the union added.
In a separate statement issued before the second proposal was rejected, Embraer said it was surprised by the union’s action as negotiations were still ongoing. Embraer did not offer further comment after the second vote.
The world’s third-largest planemaker, whose shares reached an all-time high earlier this year, has been riding tailwinds on the back of robust demand for its jets.
“The factory is breaking profitability, revenue and order backlog records. Now it’s time to share these results with those on the production line,” union director Herbert Claros said.
(Reporting by Gabriel Araujo and Alberto Alerigi Jr.; Additional reporting by Andre Romani; Writing by Isabel Teles; Editing by Aida Pelaez-Fernandez, Ed Osmond and Jamie Freed)