Unions reject Petrobras contract offer and call for work to rule

Unions reject Petrobras contract offer and call for work to rule

The FUP confederation of oil workers’ unions has called on its members to work to rule at Petrobras facilities after rejecting on Thursday the Brazilian state oil company’s contract offer, according to Reuters.

It is not a full-blown strike yet as both sides plan to keep talking.

Petrobras’ offer was a 4.97 percent increase in salaries while it planned to cut overtime payments and regular work shifts, which the union said was unacceptable.

The company’s CEO Pedro Parente is looking to make cuts across the board, including labour costs, as Petrobras – which operates numerous offshore oilfields – struggles with huge debt, low oil prices and the repercussions of its corruption scandal.

Austerity measures have included layoffs, investment cutbacks and asset sell-offs.

Petrobras’ unionized workers went on strike for three weeks last November over pay and to protest the asset sales. The action cost about 30,000 barrels per day of production.

Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.

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