SAO PAULO, March 21 (Reuters) -
Brazilian dock workers called off a national port strike set for next week and
said they are willing to relax rules that allow unions to control labor
assignments at terminals, following talks with the government over reform of
the country's ports, union leaders said on Thursday.
Progress in talks between the unions
and government will help relieve some pressure building on the global soy and
sugar markets, which have been fixating on concerns that Brazil's
underdeveloped port infrastructure might grind to a hault under the weight of
record crops this season.
Port workers have interrupted the
flow of commodities such as soy, corn, coffee, sugar and meats through
Brazilian ports over the past few months with occasional six- to 24-hour
strikes, hoping to pressure the government to negotiate its reforms.
The timing is delicate. Brazil is in
the peak of its grain export season and about to pick up its sugar exports in
the coming months. Port worker unions were planning a new strike on Monday but
called it off after progress in talks with government negotiators.
Dock workers fear the government's
proposed overhaul of Brazil's 1993 port regulations would lead to a loss in
jobs and benefits because private operators would not have to hire through a
public, centralized agency, known as "OGMO."
The government says the planned
changes for ports are critical for attracting billions of dollars in private
investment. Brazil could surpass the United States in soybean production
exports soon, but lacks the infrastructure to ensure smooth delivery.
Even without strikes, top buyers
have paid premiums for scarce U.S. soybeans because they are afraid of delays
in Brazil, due to growing lines of trucks hauling grain and sugar.
