Brazil Oil Union Accepts Petrobras Profit-Sharing Plan

SAO PAULO, May 12, 2005 (Dow Jones Commodities News via Comtex)

Union representatives at Petroleo Brasileiro SA (PBR), or Petrobras, have accepted a profit-sharing proposal offered by the company, thus averting a possible strike, a union official told Dow Jones Newswires on Thursday. The Federation of Petroleum Workers, or FUP, represents about 40,000 Petrobras employees and about 5,000 from other oil companies operating in Brazil. "We accepted the new proposal offered by the company in a meeting with company officials last night," said Antonio Carrara, FUP's coordinator. "Today, the workers themselves will vote on the proposal at assemblies." Petrobras officials offered no immediate comment on the proposal. According to FUP, Petrobras maintained its initial proposal of around 660 million Brazilian reals ($1=BRL2.47) for the 2004 profit-sharing plan. "The difference between the new proposal and the original one is the distribution structure for the benefits," said Carrara. He said the new structure offers better benefits for lower-paid workers.

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