This excerpt taken from the PBR 20-F filed Jun 30, 2005.
We are a defendant in five labor lawsuits filed by the Oil Workers Federation with three different state labor courts related to our alleged failure to index salaries in accordance with the official inflation rates published by the Brazilian government during the years 1987, 1989 and 1990. The lawsuits are each at different stages of the litigation process.
On November 23, 2001, the Oil Workers Federation, which represents approximately 96.7% of our workers, filed a lawsuit against the Supplemental Pension Plan Secretariat, seeking to prevent the approval of Petrobras VIDA. An initial judicial decision by a lower court annulled the plan, but that decision is currently being reviewed by an appeals court. Although some employees had already opted to migrate to the plan, an injunction was granted on January 10, 2002, which resulted in the suspension of the plan and which prevented us from including any employees under this plan. In 2004, we cancelled this plan. See Item 6. Directors, Senior Management and EmployeesEmployees and Labor RelationsOur Pension and Health Care Plans.