Mass Reform

In February this year, Brazilian aircraft manufacturer Embraer suddenly announced the dismissal of over 4,300 employees - around 20% of its entire workforce. The legal cases arising from the move and the subsequent court decisions suggest a tendency towards the likely reform of the nature in which mass dismissals are approached and handled in Brazil.

Embraer is the world's third largest manufacturer of commercial jet aircraft, but the company's recent financial reports showed a 3.2% drop in orders during the fourth quarter of 2008.

With an already inflated headcount due to significant growth in recent years together with the difficulties of hiring qualified professionals for its specialized market, the company took the step of dismissing around 4,300 workers from across its different plants in São Paulo State, explaining that the move had been brought about as a consequence of the global financial crisis.