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LatinNews Regional Monitor: Brazil & Southern Cone - 30 May 2018

Oil workers’ strike to go ahead in Brazil, despite judicial action

Development: On 30 May, Brazil's superior labour court (TST) declared the strike called by workers at state-owned oil company Petrobras illegal.

Significance: Following the TST’s ruling, Petrobras workers risk a R$500,000 (US$134,000) fine if they do not show up to work later today (30 May). Despite this, event organisers say the strikes will continue as planned. The threat of industrial action comes against the backdrop of ten days of lorry drivers’ strikes, which the government led by President Michel Temer is still trying to contain. This wave of social upheaval has severely undermined the Temer government, as unions begin to flex their muscles.

  • According to the Federação Única dos Petroleiros (FUP) union, the oil workers’ strikes will go ahead in eight refineries in the states of São Paulo, Minas Gerais, Paraná, Rio Grande do Sul, Amazonas, and Pernambuco. They are expected to start at 12.01am lcoal time and last for three days.
  • The FUP is campaigning for reduced fuel prices in Brazil and for the removal of Petrobras CEO Pedro Parente, who was appointed by Temer to get company finances into shape through a series of belt-tightening measures. They are also campaigning against the proposed privatisation of Petrobras, which will be a key electoral issue in the run-up to the October general election.
  • FUP members received a show of solidarity from the six other major unions, who also oppose the government’s management of Petrobras. These include the Central Única dos Trabalhadores (CUT), Força Sindical, the União Geral dos Trabalhadores (UGT), the Central dos Trabalhadores e Trabalhadoras do Brasil (CTB), Nova Central, and the Central dos Sindicatos Brasileiros (CSB).
  • Meanwhile, the Temer government is still attempting to get Brazil back to normal as the lorry drivers strike over high diesel prices continues. The president has urged the executive and legislative branches to work with him to avert the crisis.
  • Temer’s requests for collaboration have fallen on deaf ears. Yesterday, the head of the federal senate, Eunício Oliveira, approved a bill to give tax exemptions for diesel. But Temer is expected to veto the bill because it did not include the 46 cents price reduction he had already negotiated with the lorry drivers.

Looking Ahead: All this social upheaval could derail Temer’s pro-market agenda, as he limps towards the end of his term. He appears to be playing for time, saying the federal government has no more room for negotiating fuel prices and that he hopes the situation will get back to normal soon.

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