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Venezuela Oil Unions Threaten Strike Over Proposed Job Cuts
Venezuela Oil Unions Threaten Strike Over Proposed Job Cuts
Caracas, March 5 (Bloomberg) -- Venezuelan oil unions said
they would strike if the government proceeds with plans to reduce
the workforce at the state oil company, presenting President Hugo
Chavez with his first major labor challenge.
Energy and Mines Minister Ali Rodriguez is slated to outline
on Monday plans to cut costs at Petroleos de Venezuela SA to
officials at Fedpetrol, the country's largest oil union. El
Nacional reported that the company's workforce of 42,000 could be
pared back and the salaries of white-collar employees cut to take
into account falling oil prices.
''We are warning the government that it wouldn't be wise to
proceed'' with the reductions, said Bladimiro Blanco, under-
secretary general of Fedepetrol. ''We are seeking a dialogue but
we will go to a conflict'' if necessary.
A prolonged strike could disrupt supplies at the U.S.'s
largest foreign supplier of oil. Venezuela produces about 2.9
million barrels a day, with about half of the amount sold to
companies in the U.S.
''More than 10,000 contract workers in the oil industry have
been laid off since the second half of 1998,'' said Blanco.
A restructuring of PDVSA, which Chavez has said needs to be
put under tighter control because of its extravagant spending and
bloated workforce, could push up unemployment. PDVSA has 42,000
employees; the 19,000 white-collar workers are expected to bear
the brunt of any cost-cutting.
Low oil prices, coupled with the country's decision to cut
output by 525,000 barrels a day as part of an agreement by oil
producers, are the chief factors behind the decline in revenue.
Oil workers struck for 24 hours in early January. They also
carried street demonstrations last month in the eastern states of
Anzoategui and Monagas that damaged property. No injuries were
reported.
''Workers are restless,'' said Blanco. ''We are afraid that
we are losing control.''
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