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7/3, 7:29 PM (Source: TeleTrader)
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Embraer union sues board over failed Boeing deal

Embraer's workers' union announced on Friday it had filed a lawsuit seeking to oust the company's board for failing to prevent the joint deal with Boeing from falling through.

The lawsuit alleges the board members "created billions in losses and passed on the cost of their incompetence to workers." In addition, the management is being accused of allowing American engineers to "spy" on Embraer's projects during the time the $4.2 billion deal with its deal with the United States aircraft manufacturer seemed likely.

The agreement was ended by Boeing in April amid financial losses it suffered due to the 737 MAX scandal against the backdrop of the coronavirus pandemic. Embraer accused the Chicago-based planemaker of wrongfully terminating the agreement and started an arbitration process against it.

Breaking the News / JR