NEW YORK (TheStreet) -- Shares of Petrobras (PBR) - Get Report were falling in mid-afternoon trading on Thursday after the Federal Union Party rejected the company's contract offer and began preparing to strike, Reuters reports.
The union planned to meet again with Petrobras at 1 p.m. EDT and has not called for workers to walk off the job.
Petrobras said the union's decision has not affected normal operations today, according to a company statement.
But several workers at the energy company's headquarters in Rio de Janiero blocked a heliport used to access the company's offshore oil fields in the Campos basin, Reuters notes.
Last week, Petrobras offered employees a 4.97% salary increase in exchange for no overtime wages and reduced work shifts, Reuters notes.
The company is currently struggling under $125 billion in debt and CEO Pedro Parente has recently vowed to cut costs, according to Reuters.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "sell" with a ratings score of D+.
The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share.
You can view the full analysis from the report here: PBR