Venezuela strike crumbles as Chavez retains power

boston.com By Alexandra Olson, Associated Press, 2/4/2003 01:46

CARACAS, Venezuela (AP) A two-month strike designed to force President Hugo Chavez's ouster crumbled as workers in all sectors except the oil industry returned to their jobs.

Stores, factories, schools and banks started opening their doors as the government raised oil production to 1.2 million barrels a day, up from 1.1 million a day over the weekend, according to dissident staff at the state oil company.

The gains brought production closer to pre-strike levels of 3.2 million barrels a day in a nation that is a major supplier of crude to the United States and the world's fifth-largest petroleum exporter.

Oil production was still only about one-third or normal production as the strike frayed Monday, but Venezuela is expected to add 200,000 more barrels per day in the coming weeks, staff at Petroleos de Venezuela S.A. said.

Fear of bankruptcy and shortages of gasoline and other essentials prompted leaders to end the strike, which began Dec. 2. Still, strike leaders called their work stoppage a success, claiming it unified the country's diverse opposition a mix of conservatives, leftists, business and civil groups and labor unions.

On Sunday, a nationwide petition drive collected signatures supporting a proposal to amend the constitution, cut Chavez's term to four years from six and pave the way for early elections.

Organizers said 4 million people signed the petitions, a claim that could not be verified. The petitions called for a binding referendum on Chavez's rule in August and an all-powerful constituent assembly to rewrite the constitution.

Government adversaries were unsure how and when the petition drive could bring results.

''We may have to wait until August, but then again it could be another year,'' said Leonardo Aparo, a 30-year-old store manager.

The Supreme Court ruled last month that the Chavez-dominated Congress must appoint a new National Elections Council. Without a council, no one can verify the signatures or organize a vote.

Julio Brazon, president of the Consecomercio business chamber, which represents about 450,000 businesses, said the strike was a ''resounding success'' because ''an electoral solution to the crisis is in march.''

Analysts disagreed.

The strike reflected ''the disorganization of the opposition,'' said Riordan Roett, director of Western Hemisphere studies at Johns Hopkins University. ''It was anti-Chavez but never pro-anything. What were they going to replace Chavez with?''

The United States and five other countries have joined the Organization of American States in mediating 3-month-old negotiations.

After meetings here last week, diplomats from the six nations said early elections were the best way to restore stability in the increasingly volatile South American nation.

Little progress has been made since the talks began under OAS chief Cesar Gaviria in November.

Chavez, who was elected in 1998 and re-elected in 2000, claims his ''revolutionary'' government would crush the opposition at the ballot box.

As the conflict between entrenched political rivals drags on, the specter of more economic problems made worse by the strike looms on the horizon.

According to the Fedeindustria business chamber, strike fallout and continuing recession will cost 200,000 jobs and close more than 20,000 small- and medium-sized businesses by August.

Lack of oil and tax income forced Chavez to cut 10 percent from Venezuela's $25 billion budget for 2003. Economists forecast the economy will shrink 25 percent this year after an 8 percent contraction in 2002.