STF Reverses Largest Labor Conviction in Petrobras' History in Historic Decision
By a 3 to 1 vote, the 1st Panel of the Brazilian Supreme Court (STF) reversed the Superior Labor Court (TST) decision that ordered Petrobras to pay about 47 billion BRL in additional compensation and bonuses to its employees. This is the largest labor lawsuit in the state-owned company's history. According to Petrobras' attorney and partner at Caputo Bastos e Serra Advogados, Francisco Caputo, "The decision provides legal security for labor relations and values collective bargaining under the terms of the Federal Constitution."
The TST's overturned decision dates back to 2018 when the court ruled that additional earnings such as night, hazard, and health risk bonuses should not be included in the calculation base for the Minimum Remuneration by Level and Regime (RMNR). The RMNR was defined in a 2007 collective agreement as part of Petrobras' policy to address wage disparities. The state-owned company appealed the decision to the STF, arguing that the system adopted was provided for in the collective agreement.
The STF's trial began in February 2022 when the case's rapporteur, Minister Alexandre de Moraes, ruled that Petrobras did not have to pay the amounts. Ministers Dias Toffoli and Cármen Lúcia agreed with the rapporteur, but the trial was interrupted by a request for review by Minister Rosa Weber. Minister Roberto Barroso recused himself and did not vote. The trial resumed in June with a dissenting vote from Minister Rosa Weber but was again suspended due to a request for review by Minister Dias Toffoli. The trial concluded in November with a favorable decision for Petrobras by a vote of 3 to 1.
The decision saves Petrobras around 47 billion BRL. In a statement, the state-owned company declared that it is "evaluating any effects on its financial statements." On the other hand, the Oil Workers Union announced that it will appeal the decision, requesting that the case be brought to the full court.
