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Petrobras – Unfavorable Decision in the Process on Minimum Compensation per Level and Working Regime

Rio de Janeiro, June 21, 2018 – Petróleo Brasileiro S.A. – Petrobras reports that the Full Court of the Superior Labor Court (TST) has issued unfavorable decision with 13 votes against and 12 votes in favor of the Company in a trial held today on labor suits, the purpose of which is to review the criteria for calculating the Complement to the Minimum Compensation per Level and Working Regime (Remuneração Mínima por Nível e Regime – “RMNR”).

The RMNR consists of minimum compensation amounts established in specific tables guaranteed based on the level in the salary scale, the work regime and condition, and the geographic location. This remuneration policy was created and implemented in 2007 as a result of an agreement with trade union representatives and its approval in employee assemblies, and it was only challenged three years after its implementation. The matter at dispute is whether the additional arrangements and special working conditions should be included or not in calculating the Complement of RMNR.

Petrobras understands that the RMNR respects the compensation differences of each working regime and conditions, in addition to covering additional payments defined by law, as well as those agreed upon in Collective Bargaining Agreement.

The information on lawsuits classified as probable and possible loss are presented in the financial statements (ITR) for 1Q 2018, in explanatory note 28.1 – Provisions for legal proceedings and 28.3 – Contingent liabilities, respectively, and such classifications will not be altered as a result of this decision.

Therefore, there is no immediate financial and economic impact on the company, which will await the publication of the decision rendered today to assess its entire content and adopt the applicable legal measures on behalf of its interests and the interests of its investors.

Facts deemed relevant on the subject will be timely disclosed to the market.

Categories: Uncategorized

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