Embraer Strikes Deal on Furloughs, Job Protections

Embraer reached an agreement with three of its unions that covers furloughs, reduced hours, and salary cuts in the short-term but job protections in the long-term for its affected employees in the Brazilian state of São Paulo. Sindiaeroespacial, representing São Paulo aerospace workers, and the Union of Engineers in São Paulo approved the plan on April 10. Meanwhile, the Metalworkers Union from Botucatu, also in the state of São Paulo, approved the agreement earlier last week.

The result of negotiations between both unions, Embraer, and government entities, the plan is considered an emergency arrangement that began this week and will last between 60 and 90 days. Under the plan, some employees might be furloughed, while others might face reduced hours or salary cuts. Key to the agreement is that employment is guaranteed.

Working hours and wages for employees performing essential activities will not change, Embraer added. Those working from home will have their workdays reduced by 25 percent over 90 days. Furloughs will last 60 days. Affected employees are eligible for government assistance.

Embraer sent its employees in Brazil home on paid leave last month as it realigned essential operations and considered a longer-term plan. A limited number were recalled to resume essential operations, and those who have been able to work from home have continued to do so. Embraer is continuing to build and deliver business jets in the U.S.