Employees of Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) on strike

Posted In Politics - By John Anderson On Tuesday, October 22nd, 2013 With 0 Comments

Employees of a oil company in Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) which is managed by the Brazilian Government have gone on a country wide shut down to object against the sale of large offshore oil field which is due to start in the coming 7 days. Representatives of the National Oil Workers Federation have stated their opposition to the involvement of outside companies in the auction and want the same to be stopped.

The representatives have stated that their aim was not to disturb the flow of oil from the oil field but also to demand an increase in workmen salaries. The company was prepared to increase the salaries by 7.7% which is not acceptable to the workers representatives that are insisting for an increase of 11.6%. Jose Genivaldo da Silva who is the National Oil Workers Director refused to remark on the direct effect of the shutdown, but nearly 90%of the oil company’s employees did not join their duties on Thursday.

On their part company representatives definitely verified that the employees were on strike, but in an announcement they said that various steps had been taken so that the strike would not affect the normal work of the company and the consumers would also not suffer. The company stated that emergency teams which consisted of its managers and supervisors were sustain the work of the offshore platforms, terminals and refineries where the employees had struck work. It is worth stating here that the Libra prospect is thought to be one of the world’s biggest offshore oil finds.  The Libra field is thought to contain nearly 12 million barrels of oil.  The Libra Oil field is a pre-salt reserve, and is situated in the Santos Basin. Under the terms of the auction that was to take place, foreign oil companies were required to sign up with Petroleo Brasileiro and authenticate new production sharing agreements.

About the Author

- John Anderson is a native of Florida and has received a masters in broadcast journalism from the Medill School of Journalism at Northwestern University.

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