Brazil workers to decide Petrobras strike Tuesday

RIO DE JANEIRO -(MarketWatch)- The union representing oil workers at Brazil's state-run energy company Petroleo Brasileiro SA (PBR, PETR4.BR), or Petrobras, said that it will meet the company's CEO for last-ditch negotiations later Monday before deciding on a date for a strike that aims to undercut crude oil output.

The Brazilian Oil Workers Federation, or FUP, said it will meet with CEO Jose Sergio Gabrielli at 2000 GMT, a spokeswoman for the union said in a telephone interview. FUP is an umbrella union that negotiates on behalf of 12 affiliated unions across Brazil, representing nearly 60,000 of Petrobras's 75,000 employees.

"We sought this meeting directly with [Gabrielli] to see whether there was some way to advance the negotiations," the spokeswoman said. Petrobras declined to confirm the meeting. Should the meeting with Gabrielli not prove fruitful, FUP and its affiliated unions will meet Tuesday in Rio de Janeiro to decide on a strike date, the spokeswoman said.

The oil workers join a plethora of employee groups calling on Brazilian companies and the government to increase wages and benefits, asking to share in the country's robust economic growth and to offset higher local prices. Bank workers walked off the job for more than two weeks last month in one action, causing delays and long lines at the country's financial institutions.

Two previous proposals made by Petrobras were rejected by workers, including the latest offer made Nov. 14, the spokeswoman said. The oil workers were told that the Nov. 14 offer would be company's last, prompting the search for a dialogue with Petrobras's Gabrielli, the spokeswoman added. Oil workers are seeking a 10% salary increase on top of inflation, as well as other benefit increases, higher safety standards and an end to outsourcing.

Oil workers had previously planned to strike at any time starting from Nov. 16, but delayed a decision until Tuesday after Petrobras made the last proposal.

"If there is some kind of response from Petrobras [on Monday], it could be put up for debate at the Tuesday meeting," the spokeswoman said.

The last major strike at Petrobras took place in July 2008, when oil workers walked off the job for five days to protest work issues and profit-sharing proposals. The strike cost Petrobras about 63,000 barrels of daily crude oil production