🔮 Better than the Oracle? Our Fair Value found this +42% bagger 5 months before Buffett bought itRead More

Brazil's Embraer says strike blocking 'critical operations'

Published 11/08/2014, 03:19 PM
Updated 11/08/2014, 03:20 PM
© Reuters Employees of Embraer's main aircraft factory hold an assembly during a strike in Sao Jose dos Campos
EMBR3
-

SAO PAULO (Reuters) - Brazilian planemaker Embraer SA (SA:EMBR3) said on Saturday that a strike that began this week stopped it from delivering planes, processing bills and conducting other "critical operations" after union workers blocked factory doors.

A metalworkers union in the city of Sao Jose dos Campos, which is just east of Sao Paulo, where Embraer is based, declared an indefinite strike late on Wednesday, blocking access to the company's biggest factory to demand a 10 percent wage hike.

Embraer said in a statement on Saturday that it has made the workers a final offer of a 7.4 percent raise.

The union earlier this week had said that the offer of a 7.4 percent raise was not sufficient.

Inflation in Brazil is running at about 6.5 percent annually.

"The practice of blocking people's access at the workplace has impacted critical operations of the company, such as delivery of airplanes," Embraer said. "The potential damage not only negatively affects the company, but its customers, suppliers and employees."

The statement said that in the event of an impasse in negotiations, the dispute could go to labor courts.

© Reuters. Employees of Embraer's main aircraft factory hold an assembly during a strike in Sao Jose dos Campos

Chief Executive Frederico Curado told analysts on Thursday that Embraer has "some slack" in its production so far this year to hit 2014 delivery targets even if the strike continues for "a few days."

(Reporting by Brad Haynes and Brian Winter; Editing by Leslie Adler)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.