Eletrobras strike begins in Brazil

Workers at Eletrobras began a 72-hour strike on Monday, demanding a halt to the privatisation of the state-owned power company, international media reported Tuesday.

The Association of Eletrobras Employees is also pushing for the removal of Wilson Ferreira Pinto Jr. from his position as CEO, as he is a proponent of the company’s privatisation.

Brazil’s Superior Labour Court has sanctioned the strike, saying that at least 75% of workers must stay at their posts. However, the union has reported that around 85% of employees have joined the strike.

The privatisation of the 63% government-owned company was spurred by President Michel Temer’s administration, which seeks to sell six Eletrobras distribution subsidiaries for an estimated USD 3.2 billion. Additionally, 70 transmission- and wind-related special purpose companies will be sold, and the government is expected to dilute its stake before the end of 2018.

Eletrobras has a 47% market share in Brazil’s electricity transmission segment, and the company generates 32% of domestic power.