In Brazil, all Petrobras System employees are included in the collective labor agreement

OPEN DIALOGUE GUARANTEES WORKERS’ RIGHT

principle 3 Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining

Petrobras recognizes the employee’s freedom of association and it has no recorded case of violation of this right. Not only is it guaranteed by Brazilian law, but the commitment to freedom of association is also expressed in the Code of Ethics of Petrobras System, which rejects any form of discrimination against union-member employees.

Operação no Terminal de Pecém, no Ceará
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The company adopts an ongoing bargaining process with unions. This dialogue contributes to major progress in the employees’ working conditions. All employees in the Petrobras System in Brazil are included in the collective labor agreement. In 2008, an amendment to its economic clauses was signed with the unions, to update wage lists and the minimum remuneration by level and system, plus bonus payments. Social issues had already been addressed at the agreement negotiation in 2007 and are valid for two years.

In the case of major operational changes that may affect the work of the employee, Petrobras gives formal notice well in advance using the available in-company media. In the event of operational shutdowns, notice is given 72 hours beforehand. Employees, however, are informed previously of any changes and duly negotiated. Any really significant change that would cause a strong impact is undertaken after a management process with gradual implementation of the changes, in order to inform the employees and prepare them for the new situation.

Issues such as end of contract and personnel turnover are addressed in the human resources procedures. The employee dismissed by the company without just cause is entitled to 30 days notice before termination. This case may only occur when fully justifiable and with due evidence submitted by the employee’s immediate management. Dismissals without just cause involve forming a committee to analyze the case and present its formal report. This committee consists of three employees, including one representing the Human Resources department and another with no management function.

In cases of transfers at the initiative of Petrobras, implying a mandatory move of the employee’s domicile, allowances are given for moving and settling into the new work place, plus a paid allowance. The destination unit may give the employee up to ten consecutive days to settle, with another possible ten-day extension. Offshore employees are allowed 15 days allowance that may be extended to another 15, if necessary.

In July 2008, a five-day strike restricted to the production activities in Campos Basin was normalized due to the contingency plan activated by the company,with no loss to the supply market, company facilities and workers’ safety. The reason for the movement was a local claim relating to the disembarkation day of the employees. That same month, there was a 48-hour mobilization by the Brazilian Oil Workers Federation (FUP) because of negotiations about the Profit Sharing in 2007. In both cases, the relationship with the unions and the ongoing bargaining process led to an agreement between the company and unions.