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Venezuela: Heading Left

Workers in Maracaibo, Venezuela, went on strike Aug. 25 in protest of a proposed change by Venezuelan President Hugo Chavez that would target small companies that contract with Venezuelan state-owned energy company Petroleos de Venezuela (PDVSA).

The move is a dangerous one for Chavez, as it could jeopardize support from powerful unions that form part of his political base. It also could possibly signal an attempt to reduce operating costs to PDVSA by absorbing the duties of small service companies under the state’s umbrella.

Chavez made the announcement that so-called “contratistas,” or contractor companies, should be barred from working with state-owned companies. The contratistas are companies that do logistical services for PDVSA. One of the most prominent companies in this category is Terminales de Maracaibo, aka TM Servicios Marítimos, which provides oil shipping services. Chavez claimed in a speech Aug. 23 that contratistas like TM Servicios Marítimos should be eliminated from the Venezuelan economy because of poor labor practices.

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November 20, 2008 | 1849 GMT

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