OWTU: No salary cut

THE Oilfields Workers Trade Union (OWTU) has distanced itself from a newspaper report which stated the union’s president general Ancel Roget had suggested a 15 percent cut in salaries to enable Petrotrin to pay a US$850 million loan which is due next year.

The union’s education and research officer Ozzi Warwick yesterday said that Roget, in his presentation at the Eastern Credit Union’s La Joya complex on Thursday, stated that workers would buy back the bonds with a salary contribution of up to 15 percent.

Roget said the company’s Pension Fund as well as the Credit Union can make investments in the company. “He was adamant that this contribution should not be viewed as a pay-cut but as a contribution,” Warwick said in a press release.

The union also sought to clarify another issue, this one raised by Prime Minister Dr Keith Rowley in which he said government was supporting Petrotrin by citing a document which called for the provision of a government guarantee in favour of Petrotrin for US$56 million.

“For clarification, this request is not for the government to provide any cash but is simply a guarantee so that Petrotrin can obtain a loan from a financial institution to purchase the crude. The prime minister neglected to state that this crude which is approximately 730,000 barrels, is refined to produce products which are sold and that the money received from sales, goes towards payment of the loan borrowed to pay for the crude,” the union said.

The union said this was the “normal arrangement” regarding crude oil shipments to TT as the company would pay for the crude 30 days after receiving it. “However due to the government’s reckless and irresponsible statement regarding their intention to close the refinery suppliers are extremely anxious and are now requesting payment before delivering the crude.

Be assured, the OWTU Proposal, if implemented, will increase the refinery’s margins and assist in improving the refinery’s credit rating so the company would no longer need to obtain government guarantee, the release added.