Brazil Oil Strike Drags Into Second Week

(S&P Global Platts, 10.Feb.2020) — A indefinite strike by oil workers in Brazil is dragging on despite local labor court rulings classifying the work action as politically motivated and ordering 90pc of contingency crews to report for work.

On 7 February, state-controlled Petrobras said it started hiring replacement workers and services on an emergency basis, as permitted by a 6 February superior labor court decision.

“The units are operating under appropriate conditions, with reinforcement contingency teams when necessary, and there is no impact on production so far,” the company said.

Oil regulator ANP said it “is monitoring the situation and, if necessary, will take measures to guarantee supply.”

Federal oil workers union FUP urged retired workers to resist the hiring call, accusing replacement workers of betrayal to the cause of defending Petrobras.

The FUP says the current strike has the same momentum as a 32-day work action of 1995. It reports that 92 units across 13 states are participating in the strike that started on 1 February. Around 20,000 workers at 40 platforms, most in the Campos basin, 11 refineries, and three natural gas treatment units, among other installations, are participating, the FUP said.

Brazilian labor law requires that a minimum number of workers maintain activity in high-risk operations, including refineries, during labor strikes.

The union contends that the government is seeking to privatize through piecemeal divestments. The government and Petrobras are selling off assets, but Brasilia maintains that Petrobras will remain in state hands.

Workers also say Petrobras violated a 2019 collective bargaining agreement with its mid-January suspension of operations at the Fafen-PA fertilizer plant, which they say resulted in the firing of some 900 employees.

Shell, which is Brazil’s top private-sector producer, said its production is normal.

By Nathan Walters

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