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Brazilian oil workers in massive strike over Petrobras
Rio de Janeiro: Brazilian oil workers and oil giant Petrobras are locked in a power struggle over the company's privatisation plans, with the union saying thousands of employees are on an indefinite strike.
The Unified Federation of Oil Workers said 21,000 employees in 13 states have joined the strike since it kicked off on February 1 - about 60 per cent of the company's workforce.
Petrobras, contacted did not confirm those numbers.
Oil workers march against layoffs at the state oil company Petrobras in Rio de Janeiro, Brazil, on Tuesday.Credit: AP
A few hundred people gathered on Tuesday afternoon, local time, outside the headquarters of state-controlled Petrobras in Rio de Janeiro, waving flags and protesting against recent layoffs in the state of Parana.
The company says it has been able to maintain oil and gas production levels and meet fuel demand across the country by bringing in temporary workers on emergency contracts that often involve longer shifts.
The union says 36 of the company's 39 offshore platforms in the Rio de Janeiro region, as well as several refineries across the country, were now run by such contingency teams.
A tugboat pulls a Petrobras oil tanker in the Guanabara Bay in Rio earlier this month.Credit: Bloomberg
The movement suffered a blow on Monday night, when Justice Ives Gandra of Brazil's Superior Labour Court ruled the strike was illegal and ordered fines equivalent to $US115,000 ($171,000) a day if it continued.
Oil workers said they would appeal the decision.
A similar ruling last year by Justice Gandra was overruled by other members of the court, the union said in a statement, calling for the extension of the 18-day strike.
Oil workers hang a banner that reads in Portuguese "Privatisation hurts Brazil" during a protest against layoffs at the oil giant Petrobras in Rio de Janeiro.Credit: AP
Earlier this month, Gandra argued that the strike had turned "abusive" because unions did not comply with an order to guarantee that at least 90 per cent of the workforce would resume their activities. As a result, Gandra authorised Petrobras to contract emergency workers and avoid drops in production.
Analysts said the question remained how long that can last.
"I don't see any fuel shortages. Today we are able to bring in imported products," said Adriano Pires, director of a consulting firm, the Brazilian Centre for Infrastructure. "If the strike goes on much longer, we could have a problem."
President Jair Bolsonaro appointed Roberto Castello Branco, a pro-market reformer, as Petrobras' chief executive. He and Finance Minister Paulo Guedes have both advocated in favour of selling the firm's non-core assets, which remain mostly oil and gas exploration.
So far, Petrobras has discussed plans to sell eight refineries that process about half of the country's refining capacity, as well as all the logistical assets linked to those units.
"Petrobras' new administration has a divestment plan in areas that are not viable. The strike is an attempt to stop this process," Pires said.
AP