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The largest oil worker union joined smaller unions on Monday in a national strike against the privatization of Petrobras, Brazil's publically owned oil company and one of the world's most important. Right-wing politicians are pushing for divestment, outsourcing and underwater exploration by private companies, a plan which workers failed to suspend after 100 days of negotiation with Petrobras.
The Federal Petroleum Workers Union (FUP) said in a statement that they had stopped operations in half of the Campos basin, which is responsible for most company production, and other onshore oil fields. Only 10 of the 44 rigs in Campos basin did not participate—though more are expected to join in—provoking Petrobras to dispatch emergency teams to take “all necessary measures to maintain production,” it said in a statement.
Petrobras is currently under high-profile investigation over a scandal involving contracts inflated by construction companies "with the complicity of corrupt officials," according to a parliamentary commission. The "cartel" siphoned off US$2 billion from the state oil giant, which is suffering from low crude oil prices and a recently demoted credit rating to junk status. On Sunday, US$615 million of the diverted money went back to the state, which relies on Petrobras for job creation and income.
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In response to investigations, which ended October 19, Petrobras made severe cuts to spending and investment and began divesting its stake in pipeline units. Its controversial plan would sell up to US$15.1 billion in assets now and US$58 billion by 2019 in order to pay off its record-high debt.
According to a new study by the Ministry of Finance, every dollar that Petrobras disinvests causes US$2.5 of loss in gross domestic product. Besides producing massive layoffs, the FUP predicts that the plan will harm the national job market.
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