Justice

Embraer–Boeing deal suspended by federal authorities in Brazil again

The move is temporary and favors the workers’ trade union

Elaine Patricia Cruz

Published on 20/12/2018 - 14:39

São Paulo

Praetor, Embraer
Fort Lauderdale, Florida, U.S., October 12, 2018. Courtesy Embraer/Handout via REUTERS ATTENTION EDITORS - THIS — © Courtesy Embraer/Handout via REUTERS

Federal court authorities in São Paulo issued a provisional injunction temporarily suspending the agreement between companies Embraer and Boeing.

The ruling was confirmed today (Dec. 20) by the Trade Union of Metal Workers of São José dos Campos, São Paulo, co-authored the petition, along with other unions in the region, where some of Embraer’s factories are located.

Early this month, the court had granted a citizen suit submitted by a Congress members from the Workers’ Party (PT) against the deal. The motion was overturned days later at the request of the Office of the Attorney-General (AGU).

The pact underway between the two companies includes a joint venture with Boeing holding 80 percent, Embraer 20.

Today, the Brazilian government holds the so-called golden share, which gives its owner more control.