Embraer reported Wednesday that its factories in Brazil remain fully operational after a union representing metalworkers in Sao Jose dos Campos launched an indefinite strike. The union said its members walked out following what it called the company’s “refusal to apply a real increase to wages,” Reuters reported.
The walkout comes as Embraer aims to raise production in the second half of the year, a traditionally busy period for planemakers.
The union, Sindmetal, said negotiations with Fiesp—the industry group representing the aerospace sector—produced an offer of a 5.05 percent wage adjustment tied to inflation, as well as a reduction in job stability for employees injured or suffering from occupational illnesses. Workers rejected the proposal last week and approved the strike notice. On Tuesday, Fiesp offered a 5.5 percent adjustment, Embraer told Reuters, adding it was “surprised by the union’s action” because the proposal had not yet been presented to workers.
By the end of June, Embraer had delivered 26 commercial jets toward a full-year goal of 77 to 85. Shares of the planemaker were down 1.3 percent in Sao Paulo trading on Wednesday, while the benchmark Bovespa index gained 0.8 percent. Despite the strike call, Embraer said operations across its plants in Brazil “were not disrupted.”
The company, the world’s third-largest planemaker, has benefited from strong demand for its aircraft, including milestone orders from U.S. operators like Avelo. Earlier this year saw the company’s shares reach a record high.
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