http://www.venezuelanalysis.com/news/2801Venezuela's Oil Industry Signs New Labor Contract
November 3rd 2007, by Chris Carlson – Venezuelanalysis.com
PDVSA President and Minister of Energy and Petroleum Rafael Ramirez (Archive) Mérida, November 3, 2007 (venezuelanalysis.com)- Venezuela's state oil company, PDVSA, signed a new collective contract this week with its various labor unions. In addition to improved wages and benefits, the contract involved the joining together of the various labor unions into one United Confederation of Energy Workers (FUTEV). Energy Minister Rafael Ramirez emphasized that PDVSA would serve as an example for the new socialist economy under construction in Venezuela.
The new 2007-2009 contract, which goes into effect from the beginning of November and affects almost 70,000 workers, was signed at an event in the Caracas headquarters on Thursday. Energy Minister Rafael Ramirez and Vice-Minister of Labor Rafael Chacón were present at the event, along with representatives from the labor unions.
"This begins a historical precedent in our country, this new federation called FUTEV, in which different movements exist. It is exemplary for the rest of the Venezuelan labor movement," said Chacón.
Among the major achievements of the new contract is a salary increase of Bs. 12.000 (US$ 5.50) per day, bringing the standard wage for an oil worker to Bs. 44.000 (US$ 20) per day, and Bs. 1.3 million (US$ 605) per month. In addition to the salary increase, benefits were also improved, with retirement pensions raised by more than 30 percent, and food discounts raised by about 35 percent.
Workers' representative Argenis Olivares celebrated the contract as a major accomplishment.
"It is the best contract that has been signed out of a total on 19 that have been made with the company. We are going to build a nation of equality; this is the beginning of the road to the construction of a beautiful homeland," he said.
Minister Ramirez emphasized the importance of the recent nationalization in the Orinoco oil fields of Venezuela and assured that the inclusion of nearly 6,000 additional workers in the contract is an example of the new changes in relation to the industry and its workforce.
"It's necessary to expand our workforce and we are making important changes in the oil industry, such as the improvement of the relationship with the workers, the inclusion of 5,840 people. We don't have any problem with hiring all the workers necessary to guarantee the activity of the oil industry," stated Ramirez.
Both Ramirez and Chacón emphasized that the most important achievement of the contract, however, was the unification of the oil workers unions into one single confederation.
"I think we've signed an excellent contract and we've left a strong base for a new confederation. PDVSA must be at the vanguard of the state-owned companies in the construction of socialism," said Ramirez.
One of the ways in which the national oil company is taking the lead is in the development of new industrial projects. The Venezuelan oil company has recently created new subsidiary companies to take on a whole array of industrial ventures, from shipbuilding to agriculture.
This month the industrial subsidiary, PDVSA Industrial, begins a joint venture with China to import Chinese oil drills, along with the technology to begin manufacturing them in Venezuela. The Venezuelan government has bought a total of 13 oil drills from China country, for a total investment of around US$ 200 million.
The second phase of the project includes the creation of a joint company between PDVSA Industrial and the Chinese oil company CNPC. The joint company will install a plant in Venezuela for the assembly of oil drills, with an agreement for the eventual transfer of the Chinese technology to produce them locally.
With these kinds of joint ventures, initiated by the state and state-owned companies, the Chavez government plans to transfer the necessary technology to develop industry in the country, increase national production, and create greater technological sovereignty.
http://www.venezuelanalysis.com/news/2801
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