Petrobras Strike Shows Unions Can't Let Go of Boom-Year Dreams

  • Oil workers' protest reduced output at least 13% on Monday
  • Instead of demanding raises, unions want to halt spending cuts
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Petroleo Brasileiro SA, the Brazilian state-run oil company grappling with plunging crude prices, a sweeping corruption scandal and the global oil industry’s heaviest debt load, has a new problem on its hands: Unions.

The company’s workers started a strike this week that has already cut daily output and shut 30 offshore platforms. Unlike in previous years when employees demanded raises and a bigger slice of profits, this time they’re fighting for something more elusive: a halt in spending cuts and asset sales that investors say are needed to save the embattled state-run oil company from being overrun by its debt.