Petrobras

Petrobras CEO Says Wage Hikes Of Last Decade Are Impossible Today

Rigzone.com Thu, Sep 29 

Brazil's state-led oil company Petrobras is unable to give its workers raises similar to those that increased pay by about 50 percent in real, inflation-adjusted terms over the past decade, Chief Executive Pedro Parente said on Friday. Petroleo Brasileiro SA, as Petrobras is formally known, is in annual pay talks with its unions, but Parente said that at least some employees understand the need for the financially troubled, heavily indebted company to limit pay increases. In the face of nearly $125 billion of debt, falling oil prices and a corruption scandal, Parente has moved to slash capital spending, cutting Petrobras' average annual investment budget by more than two-thirds to less than $15 billion today from $47 billion in 2013. At the same time Petrobras has cut its direct and third-party contract work force by more than half to fewer than 237,000 from 445,000. ...

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