Brazil: Fines Amnesty For Oil Unions?

Brazil's legislators yesterday voted unanimously to grant an amnesty to oil unions facing massive fines. The amnesty still has to be approved by the Brazilian President, Fernando Henrique Cardoso.

Fines imposed on the oil unions for holding a legal strike three years ago now total more than 60 million US dollars. At the time, Brazil's Higher Labour Court ruled that the unions bore legal responsibility for a fuel shortage resulting from the strike. This decision led to the sequestration of oil union assets and the freezing of union bank accounts.

Brazil's oilworkers:
Fined 60 million dollars for a legal strike.
(Photo: ICEM)

The local unions involved are members of the Brazilian oil workers' federation FUP, which in turn is part of the 20-million-strong International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM). The ICEM has been pressing the Brazilian government to overturn the "scandalous" verdict, and the UN's International Labour Organisation (ILO) has repeatedly ruled that the fines violate international standards on collective bargaining and the right to strike

In fact, this is not the first time the Brazilian parliament has voted to waive the fines and unfreeze the oil unions' accounts. But to general consternation, the parliament's previous attempts to bring in an amnesty were vetoed by the President.

Now, though, the prospects are brighter, according to the FUP's Carlos Spis. He says the amnesty legislation has been more tightly drawn this time, so that it would apply purely to the oil sector, and he is optimistic that President Henrique Cardoso will sign it into law. The measure is due to go to the President next week, after which he has fifteen days to consider it.