Petrobras seeks TST mediation for collective bargaining agreement

Petrobras raises salary adjustment proposal from 1% of the National Consumer Price Index (INPC) to 70% of the INPC

This Monday, August 26, Petrobras announced that it had filed a mediation request with the Superior Labor Court (TST) to try to reach a negotiated solution for closing the Collective Bargaining Agreement (ACT) for the 2019-2020 period. Meanwhile, the ANP, stated that Petrobras and 11 foreign companies are already registered for the auction of the 16th Bidding Round of 36 exploratory oil and gas blocks

"The decision was taken by the company after exhausting attempts to reach an agreement in negotiations with union leaders", said the company in a note.

Petrobras stated that it brought forward the start of discussions to the month of May, aiming to guarantee the best conditions for dialogue between the parties, and that more than 20 meetings were held with union leaders.

Salary negotiations have already lasted more than three months and Petrobras presented its final proposal on August 8, with a period of 15 days for the unions to hear their bases and return with the answer.

The new proposal was increased by 1% of the National Consumer Price Index (INPC) to 70% of the accumulated INPC from September 1, 2018 to August 31, 2019, according to the advisory.

"The company is fully confident that the decision to seek mediation by the TST is the right one to take at this time, seeking to avoid strikes and stoppages that may harm its operations and the population in general", said the company, highlighting that , since 1995, Petrobras has granted wage adjustments that represent an accumulated real gain of 40% above inflation.

"However, it is no longer possible to make decisions without considering the potential risk that they embody to the company's recovery and competitiveness", said the company, which has been selling assets and cutting costs with the objective of reducing its debt, of more than 100 billions of dollars.

“Petrobras has been reversing the severe crisis scenario of the years 2014-2015, but it is still far from the performance that allows it to compete on equal terms with its main competitors, which requires determination in the pursuit of its objectives.”

Petrobras also said that one day after the end of the meetings of the FNP and the Single Federation of Oil Workers (FUP), on August 31, the legal validity of the ACT will end, “there is even a legal device that prevents the company from maintaining the practices without a new agreement”.

The Single Federation of Petroleum Workers (FUP), which represents most of the category, said in a note on its website that “the company insists on a lowered Collective Agreement proposal, which removes important rights… and offers a salary adjustment that does not even cover period inflation.

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