ENERGY MINISTER RAMIREZ IN NO MOOD TO NEGOTIATE

C O N F I D E N T I A L SECTION 01 OF 02 CARACAS 000919 SIPDIS ENERGY FOR CDAY AND ALOCKWOOD HQ SOUTHCOM ALSO FOR POLAD TREASURY FOR RJARPE NSC FOR RKING USDOC FOR 4332 MAC/ITA/WH/JLAO E.O. 12958: DECL: 07/17/2019 TAGS: ECIN ECON EFIN EIND EMIN ENRG EPET ETRD ETTC PGOV, EINV, VE SUBJECT: ENERGY MINISTER RAMIREZ IN NO MOOD TO NEGOTIATE REF: CARACAS 339 Classified By: Economic Counselor Darnall Steuart for reasons 1.4 (b) and (d). ¶1. (C) Summary: On July 14 Energy and Petroleum Minister Rafael Ramirez told oil and gas workers that he would not negotiate a new collective bargaining agreement with the enemies of the revolution. He also called on state-owned businesses to activate "socialist committees" in order to spread the revolution. Local observers believe that Ramirez's aggressive rhetoric represents a hardening of the GBRV's attitude towards unions and could incite more conflict in the labor sector. While two labor groups compete for the right to lead contract talks with PDVSA, labor leaders accuse Ramirez of undermining the largest union. End summary. -------------- -------------- RAMIREZ: "I WON'T NEGOTIATE WITH ENEMIES OF THE REVOLUTION" -------------- -------------- ¶2. (SBU) On July 14 PDVSA President Rafael Ramirez categorically refused to negotiate a new collective bargaining agreement with oil and gas workers who do not support the revolution. "I'm not going to sit and negotiate a contract with an enemy of the revolution," said Ramirez. Speaking at the First National Meeting of the Socialist Committees of Petroleum Industry Workers, Ramirez told attendees "It does not serve us in this moment to have a new PDVSA that is the fourth most important petroleum company in the world if that business is a den of the squalid ones (esqualidos)," a term used to denigrate the opposition as feeble and sickly. ¶3. (C) In a July 16 meeting with the charge, Sumate President Maria Corina Machado (strictly protect throughout) disclosed her unease with Ramirez's recent comments. (Note: Sumate is an NGO that works to defend democracy and promote citizen participation in Venezuela. It has more then 27,000 volunteers in 24 countries. End note). Machado said that Ramirez's comments stand in marked contrast to previous GBRV statements, even in an environment where vitriolic government rhetoric is the norm. Machado said that the GBRV usually trumpets its commitment to non-confrontation and denounces the opposition for instigating violence, but she believes �00A;that Ramirez's recent statements may be a call to arms and could portend more conflict between the GBRV and labor groups not clearly aligned with the government. -------------- SOCIALISTS UNITE! -------------- ¶4. (SBU) Relaying a direct order from President Chavez, Ramirez called for all state-owned companies to activate their "socialist committees" or be "suspected of conspiring against the revolution." Ramirez told workers to fight against the opposition not only in the petroleum industry but in all state-owned businesses. "We cannot have any businesses under state control that do not have a socialist committee. There should not be one counterrevolution in the heart of our workers movement...we have to be vigilant," Ramirez said. (Note: In the past, socialist committees have been activated for various partisan purposes, such as supporting pro-government candidates in elections and promoting the 2007 constitutional referendum. End note.) -------------- A LABOR MOVEMENT DIVIDED AND UNDER ATTACK -------------- ¶5. (SBU) Oil and gas workers are protesting that PDVSA has delayed discussion of a new collective bargaining agreement. The previous collective bargaining agreement expired in January, but contract talks have stalled while the unions hold elections to select new leaders. These elections have been postponed four times. Two competing labor groups have emerged in the recent discussions over who should lead negotiations with PDVSA. According to July 14 newspaper reports, the pro-government Socialist Workers Vanguard (VOS) CARACAS 00000919 002 OF 002 submitted 10,000 signatures to PDVSA in a move to create a special committee to lead the negotiations. Ramirez said that he supports the VOS decision to collect signatures and elect delegates "100 percent" and that the contract talks should be in the hands of the VOS to permit "a negotiation of a collective contract between revolutionaries." ¶6. (SBU) Reports published on July 16 indicate that the VOS is internally divided, despite having the confidence of Minister Ramirez. Union leader Wills Rangel publicly rejected Ramirez's statements, saying "We have to have elections" for union leaders, criticizing Minister Ramirez for saying that he would not negotiate a contact with the enemies of the revolution. Rangel added that the Federation of Oil and Gas Workers of Venezuela (FUTPV) should lead the contract talks because it represents all of the unions within PDVSA. Nevertheless, Rangel applauded Ramirez's decision to reactive the socialist committees and said that the petroleum workers were ready to use all their tools to spread socialism. ¶7. (SBU) Meanwhile, members of the FUTPV claim that the VOS proposal to select representatives for contract talks is a "trap" designed by PDVSA management to undermine the unions. At a meeting in Caracas on July 14, the FUTPV's 189 unions agreed to name a 17 member negotiation commission to lead the contract talks. The FUTPV planned to submit this proposal, with 15,000 signatures, to the Labor Ministry on July 17. In response, Ramirez has called on workers to seize control of the FUTPV to "take the revolution to the heart of our industry." ¶8. (SBU) The FUTPV accuses the GBRV of retaliating against opposition workers and promoting parallel unions. A spokesman for Fetrahidrocarburos, a union associated with the FUTPV, said that 2,500 workers were dismissed after protesting PDVSA actions. FUTPV leader Freddy Alvarado called the situation "critical" and said that Ramirez's call to discuss the contract with the VOS was "an affront against the country and the petroleum industry." Alvarado said that, if necessary, the FUTPV will take control of PDVSA's headquarters in La Campina, call for hunger strikes, or protest in defense of their collective convention. -------------- COMMENT -------------- ¶9. (C) Ramirez's aggressive rhetoric indicates that the GBRV's public posture towards the labor unions has hardened. In particular, his call to activate the "socialist committees" and his vocal support for the VOS suggest that the GBRV is determined to undermine those labor unions that challenge the government. Ramirez's statement that PDVSA is worthless if it harbors the opposition may signal a GBRV willingness to attack the unions regardless of the effect on productivity. Local observers believe that the potential for conflict will increase as the GBRV hardens its position and the labor unions feel threatened. CAULFIELD