Boulos mediates between Lula and union leaders in plan to nationalize Brazilian arms giant

Amid rumors of an imminent nomination as Lula's minister, Guilherme Boulos (PSOL-SP) is acting as a go-between in a conflicted relationship. Author of the bill proposing the nationalization of Brazil's largest heavy weapons manufacturer, the struggling giant Avibras Indústria Aeroespacial, Boulos must balance the unionists' desire to take it public with the government's reluctance to pay for it.

On the eve of a meeting of the Chamber of Deputies' Finance and Taxation Committee, Boulos defended the project on Tuesday morning (14) and appealed to a topic dear to the Workers' Party (PT) members: sovereignty. "Brazil could lose its largest defense company. And the ones who will benefit from this are Donald Trump's USA," he wrote.

But, seeking sources of revenue to combat the deficit in an election year , the government of Luiz Inácio Lula da Silva appears unwilling to relinquish the more than R$600 million the company owes the federal government. Much less shell out the necessary funds to rehabilitate it.

Founded in 1961, Avibras is considered Brazil's largest private defense systems company. It produces, for example, one of the Armed Forces' most valuable weapons: the Astros II missile launchers, similar to the American Himars, which was crucial in containing the Russian offensive in Ukraine in 2022.

The Brazilian company has millions of dollars in debt and filed for bankruptcy protection to reverse the financial crisis. However, its sale to a foreign-owned company has appeared to be the only viable solution to prevent the company from closing its doors for good.

The chaotic economic situation was exposed by Weller Gonçalves, president of the São José dos Campos Metalworkers' Union, on the association's website. According to him, Vice President Geraldo Alckmin and Defense Minister José Múcio clearly expressed their intention not to nationalize the company and instead focus on "market solutions."

Proposed in 2024, Bill 2957/2024 never made any progress, and union members' demands were strong. "Would Boulos fully pursue a campaign like this? Would he stand up to his boss to defend workers, the country's interests, and national sovereignty?" Gonçalves wrote in a June post .

Boulos seeks dialogue on Defense and Security issues

The issue is fundamentally ideological. Boulos is known for championing popular causes, invading private property, and associating with popular housing movements such as the Homeless Workers' Movement (MTST).

The nationalization of Avibras could be an opportunity to build dialogue on an issue related to Security and Defense. In August, the congressman participated in a live broadcast on "Arte da Guerra," a war-themed channel, where he addressed the issue.

Supporting the nationalization of the arms giant could politically build a dialogue with part of the conservative electorate and, at the same time, leverage its influence with the working classes to capitalize on the union's mobilization around the issue, assessed a PSOL leader interviewed by Gazeta.

Caravan to Brasilia

Linked to the Socialist Workers' Party (PSTU), the São Bernardo Metalworkers' Union chartered caravans on Monday to travel from the ABC region of São Paulo to Brasília to push for the company's nationalization. Association figures indicate that 1,400 people are reportedly owed wages and have been on strike for several months.

The crisis plaguing Avibras has been ongoing for many years. In March 2022, the company filed for bankruptcy protection, claiming it had R$600 million in debt. In July 2023, creditors approved the recovery plan—the process aims to prevent the company from closing while it negotiates with its creditors.

Avibras itself opposes its nationalization. The company was contacted for comment, but its press contact was not located. In its latest statement, from September, Avibras reported that its recovery process is ongoing and that "essential activities have been resumed, visits and technical meetings with key customers have been held, and planning has begun to restore Avibras to full capacity after a three-year shutdown."