Bloomberg News

Petrobras Workers May Go on Strike Nov. 16, Union Says

October 21, 2011

(Updates to include comments from the oil union starting in the second paragraph.)

Oct. 21 (Bloomberg) -- Petroleo Brasileiro SA workers may go on strike starting Nov. 16 depending on wage talks with the state-run oil producer, the Brazilian oil workers union known as FUP said on its website.

The union will hold a work slowdown starting on Oct. 27, and it set a Nov. 10 deadline to conclude negotiations with the Rio de Janeiro-based producer. Petrobras will hold meetings with the union next week, Petrobras’s press office said in an e- mailed statement today.

FUP is demanding a 10 percent wage raise over inflation and better work and security conditions, the union said Oct. 4. Petrobras, which produces about 90 percent of Brazil’s oil, granted a 9.4 percent increase in 2010.

Petrobras rose 2.4 percent to 19.27 reais at the close in Sao Paulo and has declined 29 percent this year, compared with the 20 percent slump in Brazil’s benchmark Bovespa stock index.

--Editors: Charles Siler, Robin Saponar

To contact the reporter on this story: Peter Millard in Rio de Janeiro at pmillard1@bloomberg.net

To contact the editor responsible for this story: Carlos Caminada at ccaminada1@bloomberg.net


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