By Brazil Stock Guide – Embraer S.A. (B3: EMBR3; NYSE: ERJ) metalworkers voted on Thursday (18) to suspend the strike and submit a new proposal to management. The assembly was held in front of the company’s headquarters in São José dos Campos, Brazil, and involved about 6,000 production workers, who have now returned to their posts while remaining mobilized.
Union’s initial demands and counterproposal
The union had initially demanded a 10% salary increase, a R$1,200 (US$226) food allowance, and the renewal of the collective bargaining agreement without removal of rights. Workers approved a counterproposal seeking a 9.5% raise, a R$1,000 (US$189) allowance, and full preservation of the agreement.
Embraer’s latest offer included a 5.5% wage hike (up from 5.05% initially) and a R$450 (US$85) food allowance, compared with the current R$400 (US$75). The company also conditioned the agreement’s renewal on reducing job stability for injured workers, which employees rejected.
The union said workers will remain mobilized until Embraer respond to the proposal. If negotiations stall, a new vote could decide on resuming the strike.
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