Wanna break strike? Call India

economictimes.indiatimes.com INDRANI BAGCHI TIMES NEWS NETWORK[ THURSDAY, JANUARY 23, 2003 01:45:47 AM ]

When the Petroleos de Venezuela SA recruited Indian workers last month to break the strike in the South American country, the move was seen as a compliment to India's skills in a sector where it hardly has any locus standi.

However, the presence of these very same workers sparked off even bigger riots and threatened the safety of the Indian community in Venezuela, compelling the government here to ask the Mumbai-based company to recall the workers.

Hugo Chavez of Venezuela, ranged in a political stalemate with the opposition for the past eight weeks, has been on a single-point mission: to break the strike that has paralysed his country and played havoc with global oil prices.

Petroleos de Venezuela SA (PDVSA) is the state oil company that provides the government with nearly half of its $20bn budget. Chavez has used the strike to fire 2,000 dissident employees at the company. But, to break the impasse, PDVSA imported Indian workers to run the oil tankers.

In December, a Mumbai-based company that provides workers for oil rigs, sent six technicians to work on the Pilin Leon tanker near Maracaibo city, 600 km west of Caracas.

An enraged Venezuelan opposition threatened India with dire consequences, extending the threats to the Indians living in Venezuela. The situation snowballed into a crisis and it was not long before the Indian embassy in Caracas became the venue for riots and further demonstrations. 

On one occasion, opposition strikers hit an embassy car. On being told that it belonged to the Indian embassy, one of them smiled and said, "India deserved it."

A rattled ambassador, R Vishwanathan, like his other counterparts, dispatched his non-essential staff to Aruba. He also issued a press release in Spanish to assure the opposition that India did not intend to meddle in Venzuela's internal affairs. But this failed to placate the rioters.

Finally, a worried Indian government asked the Mumbai company to recall the workers. It also told the firm to refrain from sending any more workers to that politically-fractured nation. It's a lesson neither the Indian government nor Indian business will forget in a hurry. 

Of late, Indian corporates are seeing the flip side of doing business in a globalised world. Recently, the manging director of Polaris was caught in the maelstrom of Indonesian politics and extortionists.

The Venezuelan incident brought home another issue: that while operating across borders, Indian business houses need to be more aware of the political implications of their actions.

The ministry of external affairs says that it should be kept in the loop when it comes to these sensitive decisions. However, business representatives sing a different tune — South Block's inaccessibility.

India companies, notably Reliance Petroleum, have been buying crude from Venezuela since '00. Hugo Chavez, who is bent on establishing left-wing rule in Venezuela, was on the verge of visiting India last year.