By JEFF FICK
RIO DE JANEIRO--Brazilian state-run energy giant Petroleo
Brasileiro, or Petrobras, said Wednesday that crude-oil
production and fuel supplies haven't been affected by an ongoing workers' strike.
The companys operational activities are working
normally, the company said.
The Brazilian Oil Workers Federation, or FUP, started a
24-hour "warning" strike at midnight, with workers declining to
change shifts at refineries, terminals and inland oil fields.
Workers at offshore platforms will perform only routine
services, a spokeswoman said.
FUP is an umbrella union that negotiates on behalf of 12
affiliated unions across Brazil. It represents nearly 60,000 of
Petrobras's 75,000 employees.
Petrobras awaits the return of unions to the
negotiation table, and [the company] expects to reach a
deal, Petrobras said.
Strikes such as Wednesdays typically involve slowdowns
and work-to-rule actions and have a limited effect on
operations because of their short duration.
The work action, however, comes as Petrobras struggles to
boost crude-oil output amid ongoing maintenance at offshore platforms.
The company also registered its first quarterly loss in more
than a decade in the second quarter because of heavy fuel
imports and a weaker Brazilian real.
Workers were protesting Petrobrass latest salary
offer, the union spokeswoman said. Petrobras said the company
last week offered a 6.5% raise and a one-time bonus
The union's directors, meanwhile, will meet Friday to
discuss possible dates for a larger strike.
The last major strike at Petrobras took place in July 2008,
when oil workers walked off the job for five days to protest
work issues and profit-sharing proposals.
The strike cost Petrobras about 63,000 bpd of crude-oil
Dow Jones Newswires