Shrugged??? no... Atlas Puked!!!
Posted on 04/10/2008 6:29:05 PM PDT by marron
CARACAS [EL COMERCIO/AGENCIAS]. Last week it was the cement industry and now it is the Andean and Caribbean steel giant’s turn. The Venezuelan government ordered the nationalization of the steel company Siderúrgica del Orinoco (owned by Ternium-Sidor, which has majority Argentine ownership) after the collapse of contract talks with the workers, announced the Venezuelan vice-president Ramon Carrizales.
"After a long process of negotiations were fruitless in solving the conflict between Sidor and its workers, president Hugo Chavez decided to assume control of Siderúrgica del Orinoco which has been privatized for some 10 years", said Carrizales.
The company "took a radical attitude and refused completely to present a counter-proposal", he said at a press conference at Miraflores Palace. "I was in contact with the president (Chávez), I explained to him that the company was behaving with great arrogance and he instructed me that the national government would take control of the company", said Carrizales.
"We felt it was a colonialist attitude which we consider disrespectful, an imperious attitude (on the part of the company) to simply keep its schemes of barbaric exploitation which the workers have been subjected to", added the vice president.
The Italian-Argentine group Techint, owner of Ternium, is the major shareholder in Sidor, with shares of 60%. About 20% were held by the [Venezuelan government] and 20% belong to the employees and ex-employees of the largest steel-maker in the Andean and Caribbean region.
Sidor produced 4.2 million tons of molten in 2006.
Venezuela denies that the decision to take state control of the steelmaker would affect relations with the Argentine government. "I don’t think it will harm relations with Argentina, which has always been very respectful of the decisions of the Venezuelan government. We maintain the best relations with this government", said Carrizales.
The president of theItalian Argentine group Techint, Paolo Rocca, owner of the steel firm, has been a strong supporter of the governments of Nestor Kirchner y Cristina Fernández de Kirchner.
A MEGA-COMPANY
The Sidor facility, located about 800 kilometers southeast of Caracas and for which the Venezuelan government received 1.2 billion dollars when it sold it in 1997, two years before Chavez rose to power, is made up of some twenty installations where steel is produced, laminated hot and cold, iron, and pipe.
The production of all that, with “subsidized raw materials, as well as electricity, was possible with the harsh exploitation of the workers, who were subjected to semi-slavery", remarked Carrizales.
He added that part of the production was sold then to Venezuela "at international prices". "That is to say, despite the subsidies we had to pay high prices”, he remarked.
"They say they haven’t broken the law? Its possible no laws were broken, but it was at least unethical and inhuman, something the government of Venezuela could not allow ", he said. He said that at the moment he could not talk about any kind of new offer by Sidor.
Previously, José Meléndez, spokesman for the workers union at Sidor, said that there was “joy at the announcement" and that the nationalization “has been a bull’s eye”… "(It means) the worker’s dream of socialism in the 21st century that we have waited for is coming true ", he said.
A powerful consortium
Paolo Rocca, president of Techint, sent yesterday an urgent letter to president Chavez, asking for his personal intervention in the conflict with the workers over their demands. "With a great sense of responsibility, I ask for your intervention to find a constructive solution for our countries and our company, and I am at your disposal for whatever you propose", wrote Rocca, according to a press release from the company.
Paolo’s father, now deceased, Roberto Rocca, head of an Italian immigrant family and founder of the company, was considered in Argentina to be the patriarch of the nation’s industry.
In the 90s’, Techint lobbied for Argentina to abandon its convertible monetary exchange policy during the government of Fernando de la Rúa, given that exporting companies would benefit from a high exchange rate, such as the current one, which led the Rocca family to maintain an alliance with the government.
FOR THE RECORD
Chavez’ nationalizations:
Nationalizing the steelmaker occurred days after taking the same measure with the nation’s cement companies managed by multinational companies in France, Mexico, and Switzerland.
May 1, 2007, the Venezuelan government took over 4 heavy crude processing plants in the Orinoco Petroleum Belt.valued at 30 billion dollars, which were managed by international oil companies.
This month, the government finished the process of returning CANTV, the country’s main telecommications company to state ownership, acquiring more than 86% of its shares for 1.3 billion dollars.
Venezuela also completed in May of 2007 the nationalization of La Electricidad de Caracas, the biggest private electric power company in the country, after buying 82% of the shares that belonged to US AES Corp.
he’s been reading Atlas Shrugged.
Mrs. Obama, Mr. Obama and Mrs. Clinton would approve.
ping
Argentina has tended to be one of Chavez’ supporters. That hasn’t stopped him from nationalizing their investments, however. Sidor is the largest steel mill in the country; Venezuela sold it to them for $1.2 billion 10 years ago, and now is taking it back.
Who is John Galt?
Seize industry for your own power...er I mean for the people.
Shrugged??? no... Atlas Puked!!!
If he had read it then he would know what the future holds for himself and his people.
Nah. Only if he comprehended it.
Don’t forget Mr. Rodham Clinton. ;-)
colonialist
What a crock.
When he nationalised the milk industry, there was a milk shortage. When he nationalised poultry, there was a shortage of eggs and chicken. Now that he has nationalised the largest steel mill...
I don’t think the Kirchner’s will mind. They are Peronistas,
They’re probably getting ready to seize the rest of the company.
I love how Chavez acts more like Hitler than anyone since... uh...Castro? Idi Amin maybe? And yet the lefties try to call GWB Hitler.
Just wait till China does this to us.
Actually Madame Presidente has some issues with her farmers in Argentina. Seems they are not liking her coialist tax the farmer policies one bit. Chavez is wearing people thin both in and outside his own country. Next week Interpol will release the findings of their independant investigation into computers the Colombians took from the dead FARC guy. Will show without question Chavez’s heavy involvement with FARC rebels, drug dealers, and US Congressmen. Lots of fireworks coming shortly.
“he’s been reading Atlas Shrugged.”
I was thinking the same thing. Today’s world is like fiction come to life.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.