Brazilian court allows Boeing to continue recruiting local aerospace engineers

“The hiring of engineers by Boeing, including those who completed the professional master’s degree offered through the Embraer/ITA partnership, although certainly frustrating, is not unlawful, nor does it authorize judicial intervention to prevent or limit such hiring.”

Industry groups claim nearly 500 engineers were recruited by Boeing prior to the opening of its São José dos Campos center in October 2023. Many hires reportedly came from Embraer and other companies involved in defense projects or possessing knowledge considered important for national sovereignty. These professionals often received education at public institutions such as ITA, Universidade Federal de Minas Gerais (UFMG), and Universidade Federal de Sao Carlos (UFSCar). Companies affected include Embraer, Akaer, Avibras, AEL Sistemas, Safran, and Mac Jee.

Roberto Gallo, President of Abimde, commented on the impact: “The impact is already significant: ten of the most important strategic companies in the defense sector have already had engineers co-opted by Boeing. Some lost about 70% of the team in specific and essential areas for the business.” The associations raised concerns about potential risks to national security due to these departures.

Despite these arguments, Judge Pires found no evidence of actual harm to national defense or security and described such risks as only “merely potential.” He also emphasized Brazil’s free enterprise system allows professionals to seek better opportunities elsewhere and said restrictions should be applied “with great caution.” Abimde and AIAB are considering whether to appeal.

Boeing’s increased recruitment followed its failed attempt to acquire Embraer’s commercial aviation division. In 2018, Boeing announced plans for a $4.2 billion acquisition intended to strengthen its position in the regional jet market while expanding Embraer’s global reach. The deal collapsed in April 2020 as Boeing faced financial challenges related to the grounding of its 737 MAX aircraft during the early months of the COVID-19 pandemic.

After ending acquisition talks with Embraer, Boeing established a subsidiary in Brazil and opened an engineering center in São José dos Campos in 2023. It then expanded recruitment efforts across Brazil's aerospace sector.