LABOR WALKOUT COMES TO AN END IN BRAZIL

Petroleos Brasileiro SA's most serious labor strike in decades was coming to an end last week. At one time in the 12 day walkout, 70% of onshore workers and 90% of offshore workers were off the job (OGJ, Sept. 23, p. 18). Brazil's Superior Labor Tribunal ruled the strike illegal and ordered an immediate return to work. Most of the 55,000 Petrobras employees had returned to their duties last week. Strikers had demanded a 370% wage hike, but the company wanted to grant only 80%. The

Sept. 30, 1991

2 min read

Petroleos Brasileiro SA's most serious labor strike in decades was coming to an end last week.

At one time in the 12 day walkout, 70% of onshore workers and 90% of offshore workers were off the job (OGJ, Sept. 23, p. 18).

Brazil's Superior Labor Tribunal ruled the strike illegal and ordered an immediate return to work. Most of the 55,000 Petrobras employees had returned to their duties last week.

Strikers had demanded a 370% wage hike, but the company wanted to grant only 80%. The Labor Tribunal ordered an average hike of 100%.

Petrobras officials expected to return to production of about 700,000 b/d of crude and 1.2 million of products within a few days. They said the risk of a natural gas supply collapse had been avoided. The strike at one time slashed gas production to only 3.6 million cu m/day from a normal 18 million cu m/day.

On Sept. 22, strike leaders representing the 19 oil workers' unions in the country recommended that their members return to work.

There was strong strike support, particularly in Sao Paulo state and its four refineries. The 289,500 b/d refinery at Paulinia, Sao Paulo, is a key processing unit, supplying about 30% of Brazil's petroleum products.

RISK CONTRACTS ISSUE

A consequence of the strike was a return to the public spotlight for the issue of risk contracts for private local and foreign companies.

Infrastructure Minister Joao Santana said Sept. 20 he favored the return of risk contracts abolished by the Constitution of 1988. The federal government has proposed an amendment to the Constitution to that effect.

Santana also proposed that private Brazilian and foreign companies be allowed to take part upstream and downstream in the country's oil industry, now a monopoly of Petrobras