Embraer proposes furlough for up to 2,000 workers due to Corruption Charges

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Embraer announced to the Metalworkers’ Union of São José dos Campos the intention to put up to 2,000 workers on two-to five-month furloughs over the course of 2017 and 2018 from its plants in Brazil. A new meeting with the Union is scheduled for November 23rd. Embraer employs around 13,000 employees in Sao Jose dos Campos.

The Union took into account and stated to the bosses that workers should not be held responsible for Embraer’s involvement in corruption cases in the Dominican Republic as well as in other countries.

Embraer was recently forced to pay a US$ 206 million fine in a lawsuit brought by the US court because of the scandal involving the company’s top management.

Instead of lay-offs, the Metalworkers’ Union demands job security and reduction of working hours without loss in pay, from 43 hours to 40 hours a week. These claims had already been approved by the workers in a mass meeting.

Corruption

Embraer is accused of paying bribes to public officials in Saudi Arabia, the Dominican Republic and Mozambique to secure sales to those countries. Embraer has been under investigation by the US Department of Justice since 2010.

Upon completion of the investigations, Embraer got a fine of US$ 206 million. This amount is equivalent to the same amount that the company will save when it dismissed 1,642 workers, which occurred last October.

The layoffs are carried out through a Voluntary Dismissal Program. That means that workers are encouraged to leave the factory.

Workers cannot pay for corruption acts carried out by Embraer’s top management. We stand for corrupt people be imprisoned and have their properties seized.

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