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Thu, Mar 19, 2009

Labor Court Says Embraer May Continue With Layoffs

Unions Filed Suit To Stop Job Cuts Last Month

Embraer's plan to cut some over 4,000 jobs was upheld Wednesday in a Brazilian court, following a suit brought forth by several of the company's labor unions. It's unclear what the next step will be for either side, however.

Several unions representing Embraer workers filed a lawsuit in late February, as ANN reported, claiming the company failed to give them proper notice of their intentions to lay off approximately 4,200 workers worldwide. The group, led by The Metalworkers Union of São José dos Campos and Surrounding Region filed the collective lawsuit February 27 with the 15th Regional Labor Appeals Court.

That lawsuit halted further layoffs at the planemaker... but it appears that was a temporary stall.

On Wednesday, Embraer issued a terse statement stating "The Regional Labor Court (Tribunal Regional do Trabalho – TRT) in Campinas, São Paulo, ruled, today, in favor of maintaining the lay-offs carried out by Embraer in February. It also determined the payment of compensations that include some of the proposals presented by the Company during the hearing held last week.

"Embraer awaits the formal publication of this ruling, in order to determine its position," the company added.

FMI: www.embraer.com

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