Brazil: Embraer Confirms Continued Production Despite Metallurgists’ Strike Call
Embraer, the Brazilian aircraft manufacturer, is currently experiencing a period of social tension. The Metalworkers’ Union in São José dos Campos announced on Wednesday an open-ended strike demanding salary increases, while the management confirmed that its factories are operating “normally” despite the call to halt work.
The union accuses the company of refusing to provide a “real wage increase” at a time when Embraer is recording record profits and significant growth in its order book. Workers are demanding an 11% increase, which far exceeds the offers made by management. The initial offer of a 5.05% increase was rejected last week, and a new offer of 5.5% was also turned down on Wednesday, strengthening the workers’ resolve to go on strike. The union also criticizes management’s intention to reduce certain guarantees, particularly job security for workers who have suffered accidents.
For its part, management expressed “surprise” at the announcement of the strike, asserting that negotiations are still ongoing. In a statement, the company emphasized that its activities have not been impacted and that its factories are operating as usual.
This dispute arises as Embraer seeks to boost production to meet its annual goals, having delivered 26 commercial airplanes by the end of June and aiming to deliver between 77 and 85 aircraft by the year’s end.
Despite these social tensions, Embraer enjoys favorable economic conditions. The company, which ranks third globally behind Boeing and Airbus, is experiencing strong demand for its regional aircraft, which helped its stock price reach an all-time high at the beginning of 2025.
Union representatives believe this situation underscores the legitimacy of their demands. Herbert Klauss, the union director, stated: “The factory is achieving record numbers in profit, revenue, and the order book. It’s time to share these results with the workers.”
The strike announcement had a limited impact on the stock market, with Embraer’s share price dropping by 0.6% in São Paulo, while the main stock index, Bovespa, rose by 1%, reflecting investors’ interest in the outcome of this social dispute.
