Embraer furloughs blocked by labour court

Washington DC
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Embraer was blocked by a Brazilian court from laying off some 4,270 workers in a furlough the planemaker announced a week ago.

A regional labour appeals court granted the interim relief sought by the Metalworkers Union of Sao Jose dos Campos and Surrounding Region and other labour groups.

The court's stay is effective until 5 March, when a conciliation hearing is set.

Embraer notes the court's relief is preliminary and says that it will appeal. The planemaker adds that it "reiterates its profound respect for the employees who were laid off, but once again emphasizes the need to adjust to the drastic reduction in demand of aircraft worldwide". The furloughs amount to about 10% of Embraer's worldwide workforce.