Petrobras Workers Threaten 5-day Strike in July


Workers at state-run oil firm Petroleo Brasileiro SA (PBR), or Petrobras, may go on a five-day strike beginning July 5, Brazil's main oil workers' union said in a release on its Web site.

The council of the federation of Brazilian oil worker unions, or FUP, Sunday unanimously approved a strike that would affect Brazil's oil production, the release said. Petrobras produces more than 95% of Brazil's oil output of about 1.85 million barrels a day.

Petrobras workers will be asked to decide about the strike in assemblies from June 18-27.

FUP wants Petrobras to present a proposal for a new plan on how positions and salaries within the company are distributed, the union federation had said earlier.

The federation demands promotions be based on merit only, and it complains workers in the company have been barred from promotions without proper reasons. Petrobras' current system to distribute positions is creating unjust salary discrepancies, FUP said.

Copyright (c) 2007 Dow Jones & Company, Inc.


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