SAO PAULO, Oct 5 (Reuters) - Brazilian bank workers plan to go on strike for an indefinite period starting on Tuesday after rejecting a pay proposal for the upcoming year.
Leaders from the Sindicato dos Bancários de São Paulo, Osasco e Região, the nation's biggest banking industry union, shunned a proposal by the National Banking Federation for an inflation-adjusted salary increase of 5.5 percent. The union sought a raise of 16 percent, an annual recurring bonus equivalent to a monthly salary and other benefits.
The banking federation, which is known as Fenaban, had proposed larger profit-sharing than in negotiations last year, but the offer fell short of union demands. Usually banks and unions tussle over pay raises at this time every year, followed by short-lived strikes that seldom disrupt branch services.
The decision by the São Paulo union was backed by peers in other regions, according to a statement.
Banks are slated to post record earnings this year amid efforts to streamline their operations in the wake of the nation's steepest recession in a quarter-century. Workers want banks to cease those efforts, which have resulted in thousands of early retirements or dismissals over the past year. (Reporting by Guillermo Parra-Bernal; Editing by Lisa Shumaker)