Vhicoa stoppage affects infrastructure development - Venezuela

Wednesday, June 11, 2008

A strike at local steel structures manufacturer Venezuelan Heavy Industries (Vhicoa) that began just over one month ago is affecting several infrastructure projects in the country, a plant employee told BNamericas.

The stoppage is affecting development on several government works including a rail viaduct, tanks for state oil company PDVSA, construction of iron ore concentrators and construction of a new bridge over the Orinoco river.

"At this point, I don't know the size of losses that the situation has caused," said Vhicoa employee Julián Rojas, adding that employees have already issued a petition of complaint to legalize the strike "because the company does not want to entertain our salary requests."

Employees are demanding that the company acknowledge a 30% salary increase proposed by the administration of President Hugo Chávez.

However, the company's CEO Ildemaro Guzmán told BNamericas on May 14 that employees had already received a 30% pay raise.

Rojas asserted that the government called for a 30% raise for employees with minimum wage, "but the company only boosted salaries by 7% and that is what we are protesting. At no point did the company provide a 30% increase."

Vhicoa, located in Puerto Ordaz city in Bolívar state, has nearly 800 employees and is performing a US$5mn expansion that will take installed capacity from 3,000t/m to 4,000t/m.

The company specializes in the design, engineering, manufacture and assembly of metal-mechanics equipment and steel structures for industry and businesses in both the domestic and international markets.

Harvey Beltrán
Business News Americas