Brazil Oil Workers Reject Wage Offer

Brazil Oil Workers Reject Wage OfferBrazil Oil Workers Reject Wage Offer

Brazil's largest oil workers union strongly rejected a proposal from Petrobras for a deal over salaries and benefits in their annual talks, increasing the risk of a new strike at the state-led oil company. Leaders of the Federacao Unica dos Petroleiros union said the terms broke agreements made in November to end a 20-day strike that was the company's longest in 20 years, Reuters reported. According to Brazilian labor laws, workers have the right to renegotiate pay and benefits every year on specific dates. Workers usually try to convince companies to increase salaries to levels at least close to the inflation accumulated in the previous 12 months, to compensate for lost purchasing power. Brazilian inflation reached 8.98% in August. But Brazilian companies have offered almost no raises this year as the country suffered its worst recession in generations. Petrobras, which is struggling to maintain minimum investments as it tries to manage the largest debt in the oil industry at $125 billion, offered a 4.97% increase in salaries, but said it would cut overtime payments and regular working shifts.