Venezuelan Oil Workers Threaten Strike Over Firings
Caracas, July 15 (Bloomberg) -- Venezuela's largest oil
workers' union said it will decide today whether to strike to
protest a wave of firings at the state oil company.
About 3,000 workers are expected to be fired at Petroleos de
Venezuela SA as the company scales back production to comply with
cutbacks that were part of an agreement by producers to boost oil
prices. Fedepetrol represents about 60,000 workers.
''A strike cannot be ruled out,'' said Fedepetrol President
Carlos Ortega at a press conference. ''One thousand workers were
let go earlier, and now we're expecting more firings.''
A decision is expected at 3 p.m.
Venezuela has agreed to reduce its output by 525,000 barrels
a day, following agreements among oil producers, cutting its
production to 2.845 million barrels a day. PDVSA said earlier
this month that the final cuts would be in force by Aug. 1.
''PDVSA plans to shut down 40 drilling rigs, and each one
employs 50 to 60 workers,'' said Ortega, who is also on the
company's board of directors. ''They also plan cutbacks in the
refineries.''
A prolonged strike could disrupt oil production in
Venezuela, which is the U.S.'s largest foreign supplier of oil.
An oil workers' strike would also hurt the government, which is
trying to keep the deficit at 4 percent of gross domestic
product, or $4 billion.
Last week, a one-day strike scheduled by oil workers to show
solidarity with striking petrochemical workers was canceled after
the labor ministry created an arbitration board to achieve a new
two year collective contract.
''Of course, petrochemical workers won't participate in this
as they have already been ordered back to work,'' said Ortega.
Besides the firings, another issue is work benefits. Ortega
said the union is opposed to company proposed changes in rules
regulating work benefits.
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