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Brazil oil workers drop strike plans at Petrobras

Mon Aug 4, 2008 1:34pm EDT

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RIO DE JANEIRO, Aug 4 (Reuters) - Oil workers in Brazil's Campos Basin have called off plans to strike at Petrobras facilities after the state-run energy company agreed to renegotiate contracts for its staff at offshore platforms, a union official said on Monday.

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The so-called Norte Fluminense union was threatening to strike for five days as of Tuesday in the Campos Basin, which accounts for about 85 percent of Brazil's oil output, to demand that the time it takes to travel from the platforms to shore be counted as paid work days.

The workers already went on strike a few weeks ago to push its demands. But production was only affected briefly because Petrobras (PETR4.SA)(PBR.N) implemented a contingency plan that kept oil flowing during the walkout.

The union voted to drop plans for another strike after Petrobras agreed to count the so-called departure days from platforms as a paid half day. In addition, the company said the changes will be retroactive as far back as January 2005.

"As of now, we'll be paid for a half day, and the big advance is that Petrobras agreed to make it retroactive," said Marcos Breda, a coordinator at the Norte Fluminense union.

Last week, Petrobras averted another strike with a broader oil workers' union known as FUP by agreeing to increase profit sharing terms for workers to 15.2 percent from 12.9 percent.

As nationwide strike in 2001 seriously hurt Petrobras's output, forcing the company to import more crude to meet demand. Over the past few years, the company has sought to negotiate agreements with workers to avoid stoppages. (Reporting by Denise Luna, Writing by Todd Benson; Editing by Marguerita Choy)



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