PDVSA Considering 3000 Job Cut

Venezuelan Workers' Confederation (CTV) Union leader Froilan Barrios said that according to sources of the oil industry, PDVSA is slashing jobs to cope with the output cuts enforced under Opec.

The company, headed by Venezuela's Oil Minister Rafael Ramirez, is also trying to minimise the financial impact of falling oil prices, a report published in El Universal newspaper said.

Barrios said that some companies working for PDVSA, such as Halliburton and Merck, announced at their meeting with Venezuelan officials that they are going to cut their payrolls by 300 workers and 500 workers, respectively.

According to the latest official figures, PDVSA's payroll amounted to 70,246 workers until last September, and there were additional 19,968 workers in the payrolls of contractor companies.

The elimination of 3000 jobs would represent more than 4% of the workforce of the state-run oil company.

Further, the union leader said that the original purpose of the meeting was to inform PDVSA's oil contractors that the oil conglomerate could not honor the payments due, as they need the resources to fund the electoral campaign ahead of a referendum to amend the Constitution in order to establish endless reelection of elected officials.

The meeting was attended by representatives of the Finance Committee, National Assembly, the Executive Office and PDVSA.

According to Barrios, "PDVSA said to contractors: 'you ought to afford payrolls, and any companies that do not pay workers will not be taken into account for future business with PDVSA.'"

PDVSA has not made any payments to contractors since last 28 December. As a result, some contractor companies have been forced to temporarily stop their operations, pending payments by PDVSA.

Author: Ksenia Kochneva