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Strike at Brazil's Embraer factory suspended

Credit: REUTERS/ROOSEVELT CASSIO

A workers' strike at Brazilian planemaker Embraer's factory in Sao Jose dos Campos has been suspended, the company and trade union said on Wednesday, although the two sides have yet to agree a settlement over the pay dispute.

BRASILIA, Sept 25 (Reuters) - A workers' strike at Brazilian planemaker Embraer's EMBR3.SA factory in Sao Jose dos Campos has been suspended, the company and trade union said on Wednesday, although the two sides have yet to agree a settlement over the pay dispute.

The company on Wednesday said staffing across both the production and administrative teams is back up at 100%, while the union said strikers were intimidated into returning to work by police.

Workers are asking for a 6.37% pay rise, while Embraer has proposed an inflation-linked increase of 3.28%. The two sides will continue negotiating, the company said.

The strike had brought a "partial" halt to production at the commercial jet plant, according to an Embraer statement. That dragged the company's shares down 3.4% on Tuesday, one of the biggest declines in months.

Embraer shares were last up 0.6% on Wednesday, outperforming the broader Bovespa index, which was down 0.3% .BVSP.

(Reporting by Marcelo Rochabrun and Jamie McGeever, Editing by Franklin Paul and Bernadette Baum)

((jamie.mcgeever@thomsonreuters.com; +55 (0)11 97189 3169; Reuters Messaging: jamie.mcgeever.reuters.com@reuters.net))

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