Brazil's umbrella oilmen union on Tuesday recommended to smaller unions in the sector that they reject a sweetened wage hike offer by state oil company Petrobras and start a strike on Nov. 17.

"We expect union assemblies to occur between tonight and the middle or end of next week. Our recommendation is to go on strike with output stoppage," said Helio Feidel, coordinator of the United Oil Workers' Federation (FUP) umbrella union.

He said Petroleo Brasileiro SA (Petrobras) on Tuesday proposed a wage increase of just over 6 percent, including compensation for inflation, but FUP rejected the offer as it insists on a 10.2 percent raise.

Petrobras officials were not available for comment.

Feidel said the strike, if approved by the unions, will be indefinite. "We will be evaluating the effects on a daily basis and trying to negotiate. We also understand that the negotiations channels remain open right now."

On Oct. 17, Petrobras workers held a one-day warning strike that did not affect output after rejecting a Petrobras wage hike offer of 4.9 percent.

Petrobras accounts for practically all oil output and refining in Latin America's largest country. It pumps about 1.7 million barrels of oil per day at home.

Last October, Petrobras and the unions negotiated a sweetened wage hike of 12.1 percent after a one-day strike to avoid a longer stoppage.

(Published Reuters, November 1, 2005)

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