By Alberto Alerigi,Gabriel Araujo

Copyright reuters

CompaniesEmbraer SA

SAO PAULO, Sept 17 (Reuters) – Planemaker Embraer (EMBR3.SA), opens new tab said on Wednesday that its plants in Brazil were operating normally after a union representing metalworkers announced a strike for an indefinite period of time, demanding higher salaries.

The metalworkers union from Sao Jose dos Campos, where Embraer’s headquarters and main production lines for commercial jets are located, said earlier they went on strike due to the firm’s “refusal to apply a real increase to wages”.

Advertisement · Scroll to continue

The move comes at a time when the company seeks to boost production to meet its annual goals, as the second half is usually busier for planemakers.

Embraer had delivered 26 commercial jets by end-June, from a full-year target of 77 to 85. The firm played down the impact of the move, saying that operations at its plants in Brazil were not disrupted.

Shares in the planemaker were down 1.3% in Sao Paulo trading, while benchmark stock index Bovespa (.BVSP), opens new tab rose 0.8%.

According to the Sindmetal union, Fiesp – the entity representing the aerospace sector – proposed in negotiations a salary adjustment only based on inflation and a reduction in job stability for injured workers and those with occupational diseases.

Advertisement · Scroll to continue

That proposal was rejected last week and a strike notice was approved, the union said in a statement, adding that the offer was for a 5.05% wage increase while workers demanded an 11% rise.

In a separate statement, Embraer said it was surprised by the union’s action as negotiations were still ongoing.

“The union has not yet presented the latest proposal to the workers,” it said, adding that a 5.5% salary adjustment had been offered by Fiesp on Tuesday.

The world’s third-largest planemaker, whose shares reached an all-time high earlier this year, has been riding tailwinds on the back of robust demand for its jets.

“The factory is breaking profitability, revenue and order backlog records. Now it’s time to share these results with those on the production line,” union director Herbert Claros said.

Reporting by Gabriel Araujo and Alberto Alerigi Jr.; Writing by Isabel Teles; Editing by Aida Pelaez-Fernandez, Mark Potter and Ed Osmond

Purchase Licensing Rights

Gabriel AraujoThomson ReutersGabriel is a Sao Paulo, Brazil-based reporter covering Latin America’s financial and breaking news from the region’s largest economy. A graduate of the University of Sao Paulo, joined Reuters while in college as a Commodities & Energy intern and has been with the firm ever since. Previously covered sports – including soccer and Formula One – for Brazilian radios and websites.