Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Bolsa de valores de Sao Paulo  >  Banco do Brasil SA    BBAS3   BRBBASACNOR3

News SummaryMost relevantAll newsSector news 

Brazil Bank Workers Reject Latest Offer as Strike Reaches 16 Days -- Update

share with twitter share with LinkedIn share with facebook
share via e-mail
10/05/2013 | 01:15am CET

By Rogerio Jelmayer and Jeff Fick

SAO PAULO--Brazil's main banking labor union said late Friday that it would recommend striking workers reject the banks' latest offer and continue a walkout that has reached 16 days.

The National Bank Federation, or Febraban, has offered a 7.1% salary increase, which is above the previous 6.1% offer but still well below the 11.93% pay raise sought by the bank workers.

However, the Contraf-CUT union said in a statement that the offer was "insufficient" and failed to address demands for better working conditions.

The annual battle over wages comes amid weaker-than-expected economic growth and lower interest rates, which have crimped bank profits. Growth is expected to be around 2.5% this year. Yet inflation remains persistently high, and is currently running at around 6%.

"The proposal must be examined considering not just the gains of this year, but also those of recent years, which are fairly significant," said the labor relations director at Febraban, Magnus Ribas Apostolico. The banks' federation said salaries have increased by more than 58% over the last seven years, while inflation has risen 42%.

According to the union, nearly half of Brazil's 20,000 bank branches were closed as of Friday, but so far most of the administrative staff hasn't been affected. They are responsible for maintaining Internet and ATM services, which many Brazilians can use to transfer money and pay bills even if branches are shut down.

The average monthly salary for a bank employee in Brazil is 4,400 Brazilian reais ($2,000), while the average salary in Brazil is around BRL1,848 a month.

Strikes over wages have become a regular occurrence in Brazil's banking sector in recent years as banks' profits have soared amid stable economic growth. Although they can hinder customers, the strikes rarely have a major impact on banks' operations or profits.

According to analysts, strikes in recent years had no effect on banks' results because they continued their normal operations via other tools, such as ATMs and the Internet.

Last year, bank workers went on a strike for nine days. At the time, workers started negotiations demanding a 10.25% pay raise, but eventually accepted a 7.5% increase.

Brazil's biggest banks in terms of assets and clients are state-run Banco do Brasil SA (>> Banco do Brasil SA) and Caixa Economica Federal, and private-sector banks Itau Unibanco Holding SA (ITUB, ITUB4.BR), Banco Bradesco SA (BBD, BBDC4.BR) and Banco Santander Brasil SA (BSBR, SANB11.BR).

Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com and Jeff Fick at jeff.fick@wsj.com

Stocks mentioned in the article : Banco do Brasil SA
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on BANCO DO BRASIL SA
12/07 BANCO DO BRASIL : Pre registration to supply and install the signals the Visual ..
11/21DJBANCO DO BRASIL : to Close Branches, Concentrate on Digital Channels -- Update
11/20DJBANCO DO BRASIL : to Close 402 Branches
11/10DJBANCO DO BRASIL : 3rd-Quarter Net Profit BRL2.25 Billion -- Update
11/10DJBANCO DO BRASIL : 3rd-Quarter Net Profit BRL2.25 Billion Vs BRL3.06 Billion
10/25 BANCO DO BRASIL : covering the maintenance, supply and installation of parts sup..
09/28 BANCO DO BRASIL : hiring company specialized in the provision of booklets produc..
09/27DJBrazil Banks, Workers to Hold New Round of Salary Talks
09/26DJCPFL ENERGIA S A : China's State Grid to Acquire Additional Stake in Brazil's CP..
09/26DJCPFL ENERGIA S A : China's State Grid to Acquire Additional Stake in Brazil's CP..
More news
Sector news : Banks - NEC
12:58aDJWESTPAC BANKING : Expects Asset Quality to Remain Sound in Year Ahead
12:40a Time Inc hires bankers to explore takeover, partnership interest - WSJ
12:09a U.S. SEC enforcement chief Ceresney to depart at year-end
12/08 UniCredit sells Polish assets ahead of share issue
12/08 ROYAL BANK OF SCOTLAND : RBS ordered to hand over documents in shareholder cash ..
More sector news : Banks - NEC
News from SeekingAlpha
11/18 Bradesco Isn't Out Of The Woods, But The Credit Cycle May Be Bottoming
03/16 Itau Unibanco Doing A Solid Job Of Juggling Chainsaws
2015 5 Dividend Value Stocks I Want To Buy Cheaper
2015 Banco Do Brasil's (BDORY) Q3 2015 Results - Earnings Call Transcript
2015 Banco Do Brasil (BDORY) on Q2 2015 Results - Earnings Call Transcript
Financials ( BRL)
Sales 2016 82 613 M
EBIT 2016 25 259 M
Net income 2016 8 958 M
Debt 2016 -
Yield 2016 3,47%
P/E ratio 2016 8,15
P/E ratio 2017 7,20
Capi. / Sales 2016 0,94x
Capi. / Sales 2017 0,89x
Capitalization 77 366 M
More Financials
Duration : Period :
Banco do Brasil SA Technical Analysis Chart | BBAS3 | BRBBASACNOR3 | 4-Traders
Full-screen chart
Technical analysis trends BANCO DO BRASIL SA
Short TermMid-TermLong Term
Technical analysis
Income Statement Evolution
More Financials
Mean consensus OUTPERFORM
Number of Analysts 16
Average target price 28,3  BRL
Spread / Average Target 4,7%
Consensus details
EPS Revisions
More Estimates Revisions
Alexandre Corrêa Abreu Chief Executive Officer & Director
Manoel Carlos de Castro Pires Chairman
César Augusto Rabello Borges VP-Operations, Services & Infrastructure
José Maurício Pereira Coelho VP-Financial Management & Investor Relations
Geraldo Afonso Dezena da Silva Vice President-Technology
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
BANCO DO BRASIL SA88.38%22 901
JPMORGAN CHASE & CO.27.32%300 825
WELLS FARGO & CO5.37%287 678
More Results