Pension dispute could prolong strike at Brazil's Petrobras

By Marta Nogueira and Rodrigo Viga Gaier

RIO DE JANEIRO, Dec 22 (Reuters) - A dispute involving about 50,000 retired Petrobras PETR3.SA employees over payment deductions may prolong a strike at the Brazilian state-run oil firm, union leaders and executives told Reuters.

Resolving a deduction of roughly 20% on pensioners' payslips from the firm's largest pension funds is the central issue of the strike, which reached on Monday its one-week mark.

"It's not a simple or cheap solution," said a company source, who requested anonymity to discuss the matter, adding the impact would be to the tune of billions of reais.

Deductions stem from a shortfall in the funds' accounts, and negotiations on how to cover it have been ongoing for two and a half years, union leaders said. Neither side disclosed how much Petrobras would need to contribute to close the gap.

The strike has affected oil platforms operating in the Santos and Campos basins, as well as refineries, biodiesel plants and other sites.

Petrobras has said the strike has not impacted production, despite two accidents on platforms that union leaders attributed to the firm's use of contingency crews.

LETTER OF COMMITMENT

Even if unions and Petrobras come to an agreement, the matter would still need to be approved by oversight bodies, which could take months or even longer.

But to end the strike, union leaders are demanding only a letter of commitment from Petrobras saying it would substantially reduce the payment deductions.

Union leaders decided to strike to force the firm's hand ahead of Brazil's 2026 presidential election, fearing that talks could stall during the campaign and that if leftist President Luiz Inacio Lula da Silva - sympathetic to worker's demands - loses his re-election bid, it could undo years of work.

"We don't know what will happen next year," said Paulo Cesar Martin, a director at the FUP union.

Petros, which runs Petrobras' pension funds, said the issue was being treated as a priority. In addition to the pension issue, demands for higher wages are also on the negotiation table, according to union leaders.