Monday, September 29, 2008

CVG-Bauxilum debts are the result of executive mismanagement, violating laws and contracts at the expense of workers owed some $345 billion

VHeadline Venezuela News reports:
After five days of labor protests, Sutracarbonorca, Sintrabauxilum, Suprabaux, Sutralumina and Sunep-CVG labor unions say there is NO serious proposal by Basic Industries & Mining (Mibam) Ministry officials or central government in Caracas to end the conflict or to resolve, once and for all, the overriding questions of meritocracy, investment and production of aluminum at CVG-Bauxilum.

Emilio Campos (secretary general of Sutracarbonorca), Valentino Edgar (general secretary of Sintrabauxilum), Antonio Rivas (general secretary of Suprabaux), Jose Sanchez (secretary general of Sutralumina) and Juan Gomez (secretary general of Sunep-CVG), met on Sunday to reiterate their warning that if the debacle at the bauxite plant is not relieved by investment, there will be no way to recover the nation's aluminum industry.

Suprobaux' Antonio Rivas says he will continue fighting to get the financial resources for CVG-Bauxilum to invest in technological adaptations which should have been implemented five years ago ... "what it implies is that we have to continue (the strike) even if in the short-term it affects the production processes!"

Rivas adds that documentation shows how his union has demonstrated its tolerance, respect and patience ... according to a document signed in September last year (2007), outgoing Mibam Minister Jose Khan had promised to pay off labor liabilities and that he was already working to put substantial investment into the company. Another document shows a request to the IRS/Seniat asking for the reimbursement of bonds and taxes. He warns that the fight will continue and clarifies that, for the moment aluminum production is not at risk ... that lies only with the input of raw material and much-needed investment. "On March 13 (2008) we went to Caracas to protest the lack of support for CVG companies that are on the edge of collapse ... but, to this day nothing has been accomplished."

Sutralumina's Jose Sanchez stresses that a committee from Caracas had offered a staggered payment proposals which was rejected by the unions. Bauxilum's interim president Alfredo Arcila offered US$10 billion to pay first and second week liabilities with an investment of $43 billion in bonds and Bs.F 27 billion in Certificates of Deposit from the sale of bauxite, but the unions called for an immediate injection of resources -- rather than the "fractured proposal" -- because of operational chaos and lack of supplies and maintenance. "There are no spare parts to repair 160 damaged equipment breakdowns ... it is NOT the first time we have asked for this situation to be resolved ... we also warned the (former Mibam) minister, Jose Khan, about the risks that the company would collapse. The new Mibam Minister, Rodolfo Sanz, was able to verify the situation with his own eyes, and concluded that aluminum companies has come to the point of no return ... they cannot continue for more than a few months in these conditions ... they do not appear to want to expedite the processes which are very slow and time is short".

Sanchez adds that CVG-Bauxilum and national executive labor liability debts are the result of executive mismanagement inasmuch as they believe that they can violate fundamental labor laws and contractual agreements at the expense of the workers, who are now owed some $345 billion.

Sintrabauxilum's Valentino Edgar says that they are committed turning the protest into a political manifestation --- "We are not fighting for the restitution of former CVG-Bauxilum president Hector Herrera Jimenez ... that is not the point ... what we want is for Mibam comply with the commitments they already made to the employees of CVG-Bauxilum ... the protest came about because only 30% of the outstanding labor liabilities were paid while 70% were not paid and it was done in a discriminatory fashion ... we are asking central government (which has the prerogative to appoint and remove executives) to refrain from removing and appointing new presidents every week ... we had one that lasted 4 months, another lasted only 9 days, and now we have an interim president, and tomorrow, another one will be appointed so that in less than a month, we will have had four presidents."

Emilio Campos says it is "disturbing" that there have been NO serious answers given to this problem. The problem of labor and environmental liabilities is the same as always. I ask Mibam Minister, Rodolfo Sanz, "where is the point of balance that we have not found in 4 months?

VHeadline Venezuela News
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