New Law May Cost 22,000 Jobs in Venezuela

According to a report from Dow Jones Newswires, Venezuelan oil unions are claiming the recent governmental seizure of oil service companies could result in a loss of 22,000 jobs in the country.

With the drop in oil prices, Venezuela has fallen behind in payments to international oil service companies working in the country, with some of the companies threatening to stop Venezuelan operations altogether. Then at the behest of President Hugo Chavez, the Venezuelan National Assembly passed a law on May 7 legalizing the state's seizure of oil service companies in the country.

On May 8, President Chavez began to commandeer foreign oil service companies performing water and gas injection to increase recovery from wells.

Approximately 8,000 workers are expected to become Pdvsa employees through this seizure.

"This law does not benefit us," the leader of the Union of Oil Workers in the Venezuelan state of Zulia, Bernardino Chirinios, told El Nacional newspaper. "There are 35,000 workers on the east coast (of the state of Zulia) and only 8,000 will be absorbed. There are 22,000 workers without guarantees."


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