Court Halts Embraer Layoffs
A regional labor court in Brazil has forced Embraer to suspend its plan to cut 20 percent of its 21,000-strong workforce after it agreed to hear a collecti
A regional labor court in Brazil has forced Embraer to suspend its plan to cut 20 percent of its 21,000-strong workforce after it agreed to hear a collective lawsuit filed by the company’s unions. Any further layoffs will now have to wait at least until the unions and management enter a process of court-administered mediation, scheduled for next Thursday.
The lawsuit claims that Embraer illegally carried out the layoffs without first negotiating with the Metalworkers Union of Sao Jose dos Campos and other union organizations. The company said in a statement today that it would appeal the court’s decision and that it carried out the dismissals “in strict compliance with all applicable laws and regulations.”
