VHeadline Venezuela News reports: Minister of Basic Industries & Mines (Mibam) and president of the Venezuelan Guayana Corporation (CVG), Rodolfo Sanz says that there's no money in the kitty to pay for the re-launch of the heavy industry conglomerate's aluminum industries unless someone comes up immediately with some US$3 billion. He says "the resources are simply NOT available at this time!"As reported in today's (Friday) edition of the local newspaper, Correo del Caroni, Minister Sanz was speaking CVG-Bauxilium aluminum workers. He added "I do not have the funds to pay those who already work for the company and less to meet all commitments, including labor liabilities and pensions."
The Minister's frank admissions came as workers gathered at the factory gates as part of an on-going protest over the paralyzation of activities at CVG-Bauxilium and increasing problems throughout the state-owned CVG subsidiaries under Sanz' executive control. While Sanz presented the facts of his situation he called on the workers to be realistic about the situation that Venezuela's aluminum industry finds itself ... "there is a serious global crisis that must be solved with capital injections into each of the holding companies, otherwise no action will solve the problem."
"Openness helps, and beyond differences with workers, we must recognize that in the case of CVG-Alcasa its been going on for 15 years ... the problem is NOT easy and I hope that you understand. Things are not going to change overnight, and I will not fall into demagoguery ... I know that we are talking about CVG-Bauxilum, but everyone should understand that this is something global, and if we are not aware that everything is connected we are basically fried!"
In response to union representatives who had urged his to do something about the aluminum industry before there is 'widespread carnage,' Sanz was not backward in criticizing trade unionists in the conflict: "I did not come out in newspapers ... I came here in person to solve problems"" an allusion to recent statements by
"Given the complexity of the situation, the solution to all of this is NOT in my hands ... I am running around to see if we can launch a bond to pay our liabilities but I can't ... I have to consider other options now.!
While Minister Sanz accepts part of the responsibility in this and other conflicts he says "I do not blame the workers, the State has to take its responsibilities and the President (Chavez) is not seeking to evade any responsibility. "Since there is no money available, we need to define how to get the resources and how long it will take ... I do not know whether it will be ten years or two years. I don't think it will be two years, but I'm going to give answers as soon we have identified sources of investment and get the resources ready ... it's a process! As president of the CVG, I am here because I want this company to succeed, just the same as you ... I don't want to be pressure here ... I'm facing up to the situation to discuss things in an atmosphere of respect and cordiality."
Correo del Coroni says that aluminum sector workers are willing to make sacrifices as long as there is a willingness on the part of the state to move ahead and not simply abandon them. But some workers complain that if President Chavez is able to send money to Peru and Bolivia; and to buy Russian weapons for $ billions, he should be able to release the funds for the necessary aluminum sector investments to be made ... "the money must be used to solve problems in Venezuela, to manage a company that benefits Venezuelans. "
CVG-Bauxilium employee Iraiza Coromoto Marcano asked Minister Sanz to intercede with central government to first of all assume a $400 million CVG-Alcasa debt rather than to wait for $3 billion needed for the entire aluminum industry. "The next thing the minister should do is to put the (CVG) house in order ... I do not understand how CVG-Alcasa is otherwise to survive. We are not going to be fobbed off with lies and evasions, the new president of CVG-Alcasa must get it right ... the decision is NOT in our hands ... President Chavez must solve the problem quickly!"
Sanz insists that although there are huge debts affecting investment and other aspects, the company will put labor liabilities as a priority ... "this was not previously so, but I have put pressure on management today and told them to get the numbers right since I do not want any worker to have to go to the Labor inspectorate to enforce their rights. I also told the presidents of CVG subsidiary companies recognize company debts to their workers, and here at CVG-Bauxilum the liabilities to employees are in the order of Bs.F175 billion ... that makes some Bs.F 1.6 trillion in total liabilities across the sector and we will to seek medium to long-term resources and investments to meet them."
Sanz called on workers and trade unionists to remain calm and not to see him as a crocodile among the sheep ... everyone is responsible for their actions and I am responsible for mine, I'm telling you that I will work for a resolution and if you can not do that, it is your decision. How can I approve pensions if we cannot pay those who are working ... it not make sense ... so we are looking for other options."
Following the factory-gate meeting, union leaders had a closed-doors meeting with Minister Rodolfo Sanz at CVG-Bauxilium headquarters where, reportedly, a number of agreements were achieved. Jose Sanchez, secretary general of the Aluminum Workers' Union (Sutralumina) says that agreement was reached on a number of issues despite not a current company deficit of $220 million and that allocations would be made to other liabilities and pollution problems on the Rio Orinoco associated with CVG-Bauxilum.
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