Brazil workers extend Petrobras refinery, Saupe Petrochemical strike

19 November 2012 18:26  [Source: ICIS news]

MEDELLIN, Colombia (ICIS) --After a tense vote, unionised workers at Petrobras’ Abreu e Lima refinery and Saupe Petroquimica voted to continue a labor strike on Monday, according to a Brazilian state labor union.

The 51,000-worker strong strike will continue until at least 22 November, the Industrial Worker’s Union for Road Construction, Paving and Earthmoving for the State of Pernambuco (SINTEPAV-PE) said.

The union will discuss with members the outcome of a meeting on 20 November with Brazilian Labor Minister Brizola Neto, the national union association president and company representatives.

"We hope there will be an acceptable negotiated settlement for us to submit to workers for acceptance on Thursday," SINTEPAV-PE president, Aldo Amaral, said.

The labor strike, which began in late October, was extended because workers say disparities in wages continue, despite an agreement signed in August.

Brazil's state-led oil company and Saupe did not immediately respond to emails seeking comment.

Petrobras said in February that it plans a June 2013 start-up date for the first stage of its Abreu e Lima refinery. The second stage should start operations in January 2014, the company said.

The Abreu e Lima refinery, located in the northeast state of Pernambuco in Brazil, will have a processing capacity of 230,000 bbl/day and will allow Petrobras to reduce diesel fuel imports, which are expected to reach 280,000 bbl/day by 2014.

Saupe Petroquimica plans to produce purified terephthalic acid (PTA) and polyethylene terephthalate (PET) resin for Latin American markets, according to the company. The industrial complex will have a PTA capacity of 700,000 tonnes/year and a 450,000 tonne/yr capacity of PET resin, the company said.

($1 = €0.78)

By: Leela Landress
+1 713 525 2653

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