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SAO PAULO, Oct 2 (Reuters) - Bank workers in São Paulo, Brazil’s most populous and richest state, plan to strike for an indefinite period starting on Tuesday after rejecting a pay proposal for the upcoming year.
The union late on Thursday 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 more benefits.
Leaders of the Sindicato dos Bancários de São Paulo, Osasco e Região union will meet on Monday night to begin strike proceedings, according to a statement.
The banking federation, which is known as Fenaban, 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.
Brazil’s largest private-sector banks are headquartered in the state of São Paulo, which has about 23 percent of the nation’s population and produces about 30 percent of gross domestic product. Itaú Unibanco Holding SA and Banco Santander Brasil SA are based in the city of São Paulo, while Banco Bradesco SA is based in the town of Osasco.
Banks are slated to post record earnings this year, partly because of efforts to streamline their operations in the wake of the steepest recession in a quarter-century.
Workers are demanding that banks cease those efforts, which have resulted in thousands of early retirements or dismissals this year.
Shares of Itaú and Bradesco were up 1.1 percent on Friday, while Santander Brasil jumped 3.9 percent. (Reporting by Guillermo Parra-Bernal; Editing by Chizu Nomiyama)