Petrobras management cancelled talks with the oilworkers union FUP, according to Reuters. The talks were supposed to happen on Tuesday.

No reason was given for the cancellation of the talks.

The strike began on Sunday November 1 and has seen production hit at several of the Brazilian state oil company’s offshore drilling sites.

Strikers are demanding a halt to austerity measures that Petrobras has put in place or plans to put in place as the company bids to improve its financial plight.

Cuts to budgets and the workforce and the sell-off of assets are high on the union’s hit list.

Scandal-hit Petrobras on Monday admitted that the labour action has cut its Brazilian oil output by about 115,000 barrels a day, or about 5.5 percent of output.