"To safeguard the company's assets, Sidor has begun halting operations," the company said. Despite government claims to the contrary, sources have confirmed that the Anaco gas facility, which serves the Guayana heavy industrial area that Sidor is in, has cut production to less than half its capacity in adherence to a nationwide strike now in its 15th day. The Guayana industrial region was also reportedly affected by a tugboat and transportation ship strike that was preventing raw materials from arriving at, and finished products leaving from, facilities.
The problems add to a near shutdown at state oil company Petroleos de Venezuela SA as a result of the company's workers backing the strike opposition leaders launched Dec. 2 to force the government into accepting an immediate nonbinding referendum on Chavez's presidency. After three protesters were killed by gunmen at an opposition rally Dec. 6, strike leaders demanded Chavez resign immediately and call elections. Chavez has thus far maintained the constitution only requires him to accept the results of a possible recall referendum next August, the midpoint of his term. His representatives Monday agreed to "discuss" elections the opposition want by the first quarter of next year.
Chavez's critics blame his left-leaning policies for country's deepening economic crisis with a 6.4% contraction in the first nine months of this year, 17% unemployment, and 30% annualized inflation sparked by a nearly 50% devaluation of the bolivar ($1=VEB1294.50) earlier this year. The currency has strengthened a bit since then mostly due to central bank efforts. Chavez has blamed the problems on an "economic coup" led by his Opponents. [End]