BRAZIL STRIKES CAUSE GOVERNMENT MAJOR PROBLEMS

  Strikes by Brazil's 40,000
  seamen and by petrol station owners in four states are causing
  major headaches to a government already wrestling with a debt
  crisis.
      A week ago seamen began their first national strike for 25
  years and union leaders say they have seriously affected
  Brazilian exports by making idle 160 ships.
      On February 20 the Brazilian government suspended interest
  payments on part of its huge foreign debt following a sharp
  deterioration in its trade balance.
      Today the government faced a fresh problem, when most
  petrol station owners in Sao Paulo, the country's industrial
  heartland, and in three other states closed down to press for
  higher fuel prices.
      There were fears that the combination of the two stoppages
  could lead to a serious fuel shortage.
      The seamen's leaders say their strike has halted 48 of the
  72 ships belonging to the state oil company Petrobras.
      The Jornal do Brasil newspaper, in an editorial today
  entitled "Dangerous Confrontation," said: "From the economic
  point of view the seamen's strike carries an alarming cost,
  with grave consequences for the supply situation and for the
  country's external trade."
      The seamen are seeking a 275 pct pay rise and have rejected
  offers of up to 100 pct.
      Later today the Higher Labour Tribunal in Brasilia is due
  to rule on whether the seamen's strike is legal. But a senior
  official of the National Merchant Marine Union, Jorge Luis Leao
  Franco, told Reuters that the strike would continue regardless
  of the tribunal's ruling.
      Labour unrest has worsened in Brazil following the collapse
  over the last few months of the government's Cruzado Plan price
  freeze. Prices have been rising at about 15 pct a month. Not
  only workers but also businessmen are restive. Petrol station
  owners said many garages had closed indefinitely today in Sao
  Paulo, Parana, Mato Grosso and Mato Grosso do Sul.
      Television reports said that in the Parana state capital of
  Curitiba petrol stations were only supplying fuel for
  exceptional cases such as ambulances and funeral processions.
      Brazilian garage owners want to be allowed to raise their
  profits on alcohol fuel and petrol sales to 1.26 cruzados (six
  U.S. Cents) a litre from 0.56 cruzados (about 2.5 cents).
      Queues formed at petrol stations in Sao Paulo late last
  night as motorists filled up their tanks while they still
  could.
      Political sources said the government of President Jose
  Sarney was closely following the strikes and the overall fuel
  supply situation.
  

