Adamant: Hardest metal
Sunday, June 29, 2003

Venezuela Oil Minister Says Fired Workers Won't Return to Jobs

June 16 (<a href=quote.bloomberg.com>Bloomberg) -- Venezuelan Energy and Mines Minister Rafael Ramirez said 18,000 oil workers fired by the government during a two-month strike won't get their jobs back even though a court ruled last week that their dismissals were illegal.

Ramirez said in a television interview that the government would take all necessary legal steps to overturn the ruling by the first consultative court.

``We will never permit these persons, who were capable of paralyzing the oil industry and committing acts of sabotage that left losses of more than $7 billion, to return to head operations in the oil industry,'' Ramirez said.

Ramirez' comments suggests many of the striking oil workers will never come up for reinstatement, raising doubt whether state- oil company Petroleos de Venezuela SA will be able to sustain production at currency levels. Analysts have said the company needs its former employees to maintain and repair many of its wells and facilities or face declining output.

The court ruled last week that the government couldn't fire workers as they belonged to the Unapetrol union and were protected by the country's labor laws.

The decisions of the first court are always open to appeal,'' Ramirez said. We are already starting legal steps.''

Venezuela is currently producing about 3.2 million barrels a day, including 100,000 barrels a day of a fuel substitute and 150,000 barrels of condensates, Ramirez said.

The strike in December and January, which cut oil production by as much as 95 percent, cost the economy $7.4 billion. Labor unions, business leaders and former oil executives organized the national work stoppage to pressure President Hugo Chavez to step down and hold elections.

Venezuela may hold a binding referendum later this year on Chavez's rule.

You are not logged in