Friday, September 26, 2008

Mibam Minister Rodolfo Sanz (and maybe Chavez himself) to fly to Bolivar this weekend!

VHeadline Venezuela News reports: Venezuelan Guayana Corporation (CVG) subsidiary, CVG-Bauxilum workers are continuing their industrial action blocking access to the factory site, protesting what they describe as the irresponsibility of political management at the state-owned heavy industry conglomerate and at the Basic Industries & Mining (Mibam) Ministry despite news that Minister Rodolfo Sanz has promised to visit the plant this Sunday to take personal charge of the situation.

CVG-Bauxilum unions are complaining that no less than three different company presidents have been appointed over the last month and that management confusion and other difficulties are negatively affecting alumina production, much-needed investments and labor relations.

Deputy Mibam Minister Jesus Paredes has met with union leaders and the temporary president of CVG-Bauxilum Alfredo Arcila as well as CVG-Venalum president Carlos Acosta Perez but the only resolution issuing from that meeting was a repetion of a previous statement that "everything is in the hands of President Hugo Chavez himself to resolve!"

Sutralumina Bolivar secretary general Jose Sanchez has been informed that there is NOT enough cash available for CVG-Bauxilum to honor its already overdue labor liabilities ... never mind the critical investments in new technology that have been long overdue. The long-distance firing earlier in the week of CVG-Bauxilum's two-week president, Hector Herrera Jimenez hasn;t helped the situation any ... Sanchez says that, if anything, the situation has gotten worse instead of better.

Meanwhile it has transpired that CVG-Bauxilum had overpaid the amount of Bs.F 42 million (around $20 million) to th IRS/Seniat and that Bs.F 120 million ($60 million) promised to the company by central government more than a month ago is "still in the mail"!

Mibam's Vice Minister Jesus Paredes has, meanwhile, travelled from southeastern Guayana to Caracas preparatory to a top-level meeting with President Hugo Chavez AND Mibam Minister and CVG corporate president Rodolfo Sanz as soon as they arrive back from a visit to China and Russia on Saturday morning.

Sanz has already said that he (and Paredes, and probably Chavez too!) will travel to Bolivar State on Sunday "to address the situation personally," while in late breaking news it is understood that Paredes will return briefly to Puerto Ordaz (Bolivar) for an extra specially convened board meeting of the CVG holding corporation.

Nevetheless, interim CVG-Bauxilum president Alfredo Arcila says that production at Bauxilum has not been stopped for any significant time because of the labor conflict at the factory gate and that the company is already operating a contingency plan. "The plant has not been paralyzed and we are counting on the collaboration all those who work here to keep it going ... no one is interested in seeing the plant paralyzed, it does not serve the interests of the country or the management or workers at the company. My task as interim president is to temporarily assist in the process of improving operational conditions and to accelerate the processes for the achievement of financial resources."


VHeadline Venezuela News
vheadline@gmail.com


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