Brazil environmental workers sign agreement to end strike holding up oil permits

SAO PAULO/RIO DE JANEIRO (Reuters) -A union representing Brazil's federal environment workers said it had signed an agreement with the government to end a strike affecting oil and gas licenses in Latin America's largest economy, according to a press release on Monday.

The union Ascema, which represents workers from federal environmental agencies Ibama and ICMBio, as well as from the environment ministry, said that it intends to maintain a broader work slowdown that began in January, meaning licenses could still be affected.

Ascema voted to strike in June, demanding better wages and working conditions.

The agreement signed on Monday gives up on most demands beyond a salary hike, the union said.

Brazil's ministry for public services management and innovation, responsible for holding negotiations with government worker unions, did not immediately respond to request for comment.

Oil lobby group IBP previously said the holdup for oil permits had caused a hit to Brazilian production equivalent to 200,000 barrels per day, while Brazil's state-run oil firm Petrobras said the lack of licenses has affected their operations in three oil fields.

(Reporting by Andre Romani in Sao Paulo and Fabio Teixeira in Rio de Janeiro; additional reporting by Maria Carolina Marcello in Brasilia; Editing by Brendan O'Boyle)