Union defends renationalization to save Embraer

Sputnik - After Boeing confirmed the termination of the contract to purchase part of Embraer, the Metalworkers Union of São José dos Campos asked this Saturday (25) for the renationalization of the Brazilian company. 

In addition, the entity stated that the government should guarantee the jobs of the company's workers. 

"We advocate that the Brazilian government fulfill its role in favor of our sovereignty and re-nationalize Embraer so that, given the collateral effects to be caused by the rupture of the agreement, aggravated by the economic consequences caused by the coronavirus pandemic, the jobs and rights of workers are fully preserved," says the union's statement. 

Through an official statement released today by the American company, it stated that it "exercised its right to terminate" the contract because Embraer "did not meet the necessary conditions." The agreement stipulated that the deadline for contract termination would be April 24th.

'National heritage'

The union emphasized that it has always opposed the sale of Embraer, which, according to the organization, is "a strategic national asset for the country and does not need an alliance with international partners to survive."

According to the union, the withdrawal was a "twist in a transaction marked by disregard for national interests and those of Brazilian workers." 

The organization also stated that the sale process cost the company R$ 485 million in 2019, "according to Embraer's own financial statements," and demanded that Boeing reimburse the loss.

Following Boeing's decision, Embraer issued a statement asserting that the US company "improperly terminated the Master Transaction Agreement (MTA) and fabricated false allegations as a pretext to try to avoid its commitments to close the transaction and pay Embraer the purchase price of US$4,2 billion [R$23,5 billion]."