Brazilian Union Rejects Petrobras Offer to End Strike

• Sindipetro-NF was the only union among 14 FUP-affiliated organizations to reject the deal, with the dispute centered on complex pension fund issues and deductions to pensioners
• The strike involves workers in Brazil's second-largest oil production region (Campos basin), though Petrobras maintains normal operations using backup crews
• Another umbrella organization, FNP, has also advised its member unions to continue striking, indicating broader labor tensions beyond FUP-affiliated workers

Petrobras Strike Continues as Major Union Rejects Settlement

Brazilian oil workers' union Sindipetro-NF has rejected Petrobras' latest proposal to end a 12-day strike, prolonging labor tensions at the state-run oil company. The union represents approximately 25,000 workers in Brazil's oil industry, including personnel on Petrobras' offshore platforms in the Campos basin, the country's second-largest oil production region.

While Sindipetro-NF is the largest union under the FUP umbrella organization, it stood alone in rejecting the deal after all 13 other FUP-affiliated unions voted to accept and end the strike. The FUP board had recommended accepting Petrobras' proposal, but the final decision required worker approval. Additionally, unions under a separate umbrella organization, FNP, have also advised continuing the protest.

Petrobras reported that production remains unaffected by the strike, as contingency crews are maintaining operations. The dispute centers on complex issues related to the company's pension funds and deductions from pensioner payments.

The rejection by Sindipetro-NF means strike action will persist at certain facilities, though the limited scope suggests minimal operational disruption. Market implications appear contained given Petrobras' successful deployment of backup personnel and the fractured nature of union support for continuing the strike. However, prolonged labor disputes could eventually pressure production if more unions join or if contingency measures prove insufficient.

The split decision among unions indicates potential for either escalation if solidarity builds among workers, or gradual resolution as striking unions face pressure from those who accepted the deal. Investors should monitor whether production impacts emerge and track negotiations between Petrobras management and holdout unions.