Proposal rejected

THE board of state-owned oil company Petrotrin has rejected a proposal for the company’s restructuring from the Oilfields Workers Trade Union (OWTU). The refinery section of the Petrotrin is scheduled to cease operations next Monday.

In a media release yesterday, Petrotrin described the union’s proposal as “not viable,” as it failed to address several key issues such as profitability and financing of the cash-strapped company.

The two parties met on September 27 as part of a follow-up to one last week, when the union presented its plan to restructure Petrotrin. In addition, the union also tabled a proposal for leasing of the Pointe-a-Pierre oil refinery. The meeting took place at Petrotrin’s Pointe-a-Pierre Staff Club and lasted approximately two hours.

Chairman Wilfred Espinet said, “The board advised the union that the proposal failed to address critical issues regarding financing and profitability and there was insufficient information to give us an understanding of how the plan would work. We therefore decided that it was not a viable option.”

He said the union had also presented a lease proposal different from the one presented last week. Espinet said the union was told the board would review the proposal, but confirmed that it “would be proceeding with its transition plans for a safe and efficient shutdown of the refinery and the preservation of the company’s assets.”

He added, “The board is open to any option that would make the business self-sustainable and profitable but time is not on our side and we are proceeding with the one viable option that is available.”

At the meeting, the OWTU was told Petrotrin’s operations will end on November 30 and all permanent employees will “receive their termination by the terms of the relevant collective agreements.” The company plans to meet next week with the union and the various staff associations to give more information on termination packages and the exit procedure.

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