Petrobras workers expected to strike

Petrobras workers are expected to meet with the company's management on 10th November to discuss wage increases and better working conditions. The union, Federação Única dos Petroleiros (FUP), will review whether or not to take strike action.

According to the head of FUP Joao Antonio de Moraes, who spoke to Bloomberg, there has been work stoppage since 6th November. The workers are demanding a 10 per cent increase above inflation and better safety. The FUP said that Petrobras had made an offer to compromise on 31st October but the union rejected it.

Recently, Brazilian automotive, construction and bank workers have gone on strike to demand raises in excess of 10 per cent after annual inflation reached a six-year high of 7.3 per cent in September. Petrobras, which produces about 90 per cent of Brazil's oil, granted union workers a 9.4 per cent raise in 2010.

Sources: Bloomberg, Business Week, Wall Street Journal

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