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Venezuela Oil Strike Threatens Export to USA

/28 13:34 Venezuela's No.1 Oil Union, Govt Meet to Avert Strike (Update2) By Alex Kennedy

(Rewrites first paragraph, adds Labor Ministry comment in 8th paragraph, creation of government labor commission in 10th paragraph.)

Caracas, Feb. 28 (Bloomberg) -- Venezuela's largest oil worker union and top government officials began daylong meetings today in an bid to negotiate a new contract and avoid a strike that could reduce oil exports to the United States.

Fedepetrol President Carlos Ortega met with Labor Minister Lino Martinez, officials from state oil company Petroleos de Venezuela SA, and interim Congress President Luis Miquilena, a Fedepetrol spokeswoman said. ``This will be a decisive meeting,'' said Ortega as he arrived for the talks. ``We will not be intimated by government threats.''

PDVSA and government officials on Feb. 10 postponed talks for eight months on a contract for approximately 40,000 union members, whose old contract expired at the end of November. The delay ignited union ire and led to a series of strike threats.

Tension between the two sides rose over the weekend when Venezuelan President Hugo Chavez dared oil workers to strike. ``Chavez has become enemy No. 1 for Venezuelan workers,'' said Ortega.

The government wants to negotiate with new union leaders and has insisted unions hold elections before contract talks begin again. Ortega said Fedepetrol is open to elections but criticized the government for intimidating workers.

Fedepetrol is demanding that worker salaries be more than doubled, while PDVSA has offered an 11 percent raise. ``I hope the political factor can be reduced to a minimum,'' said Martinez.

A strike could affect shipments of oil to the U.S. from one of its largest suppliers. Fedepetrol threatened to strike eight times last year, carrying out two 24-hour strikes, without jeopardizing exports.

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-- Bill P (porterwn@one.net), February 28, 2000