By DIANA KINCH
RIO DE JANEIRO -- Workers at Brazilian oil-and-gas producer
Petroleo Brasileiro SA, or Petrobras, rejected a pay offer made
by the company late Wednesday and have threatened to stage a
24-hour nationwide strike on September 26 if their demands
The Federal Oil Workers Union, known as FUP, rejected a 6.5%
pay-raise offer made by Petrobras as part of an annual
renegotiation of a collective labor agreement. The wage offer
represents an increase of approximately 1% over the annual
consumer inflation rate.
However, FUP is pressing for a 10% pay increase, which would
give its workers a rise in real terms, a
spokeswoman for FUP said.
FUP on Thursday started to hold a series of members'
assemblies throughout Brazil at which around 80,000 Petrobras
workers will determine if they will move forward with a
proposal for the September 26 strike.
The result of the assemblies will be known Monday, the
The strike will bother Petrobras but won't really
affect production as a minimum production level strategy will
be maintained at the company's installations, the
Petrobras said Thursday that negotiations on the labor
accord continue and the company expects to reach an agreement
with the trade unions.
Dow Jones Newswires