By Brazil Stock Guide – Embraer employees (B3: EMBR3, NYSE: ERJ) began an indefinite strike today, on Sept. 17, at the company’s main plant in São José dos Campos, Brazil, after wage and labor talks with the metalworkers’ union and Fiesp stalled.
Workers are demanding an 11% pay increase, a monthly food allowance of R$1,000 ($200), and a collective bargaining agreement. The management proposal includes a 5.05% raise, in line with inflation, and changes to job stability rules for employees affected by workplace accidents or occupational illnesses.
The last collective agreement, signed in 2017, guaranteed stability until retirement. Since 2018, Embraer has pushed to reduce the period to 21 months in cases of illness and 60 months in accidents, a central obstacle in negotiations.
The strike was approved in a union assembly at the company’s São José dos Campos plant. A previous vote on Sept. 9 had already rejected the offer and authorized a strike notice.
Embraer reported net income of R$675 million ($135 million) in the second quarter of 2025, with growth in its order backlog. The company also benefits from loans from BNDES, Brazil’s development bank. If prolonged, the strike could disrupt aircraft production and delivery schedules. Investors are watching closely as Embraer plays a key role in regional aviation.