Unions to decide on Brazil oil strike Friday

Brazilian oil workers' umbrella union that has called for a strike at state company Petrobras said on Thursday union assemblies have not yet confirmed they will stop working, but expected a decision on Friday.

"Petrobras' offer is being rejected by union assemblies, but we still do not have a decision from them on strike," said a spokeswoman for the United Oil Workers' Federation (FUP) that last week marked a five-day strike for next Tuesday.

FUP leaders spent many hours on Thursday in a meeting with representatives of smaller unions. FUP coordinator Antonio Carrara said the meeting would continue on Friday.

"We'll have the decision on Friday, now it's still undefined," he said, declining to comment on whether there were any objections to the strike. Oilmen union assemblies tend to back the umbrella group's decisions.

Last week, Petrobras offered a 12.1 percent wage increase, excluding retirees, while the workers demanded a 13.2 percent raise for all.

FUP rejected the offer and called a strike that could hit Petrobras' 1.5 million barrel per day crude output amid a world oil price rally caused by concerns over fuel supply.

A Petrobras spokeswoman said the company was still waiting for a formal response on its latest offer from the unions before reopening talks.

A nationwide oil workers' stoppage in October 2001 lasted five days and battered Brazil's economy.A year ago, the company that accounts for nearly all oil production and refining in Brazil, had to meet wage hike demands of 15.5 percent to avert a three-day stoppage.

Petrobras' stock slipped 0.7 percent to close at 91.3 reais on Thursday, still outperforming the broader market, after the company announced a small rise in its gasoline and diesel prices from Friday.

(From Reuters, October 15, 2004)

_____________