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Brazilian labor court suspends layoffs of aircraft company
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12:35, February 28, 2009

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A Brazilian labor court on Friday ordered the temporary suspension of the layoff of some 4,270 workers from aircraft company Embraer.

The court based its ruling on the grounds that the company announced the massive layoff plan without previous negotiations with its employees, which could have led to alternative solutions.

The suspension lasts until March 5 when a conciliation meeting will be held to see if both sides could reach an agreement.

Embraer announced the layoff of roughly 20 percent of its total employees on Feb. 19.

The cuts were motivated by "an unprecedented crisis" which led to a 30 percent drop in orders for its aircraft till 2012, the company said.

The cuts reportedly has angered President Luiz Inacio Lula da Silva who considers that a company which has obtained financing from the state bank should not make such a decision.

Source: Xinhua



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