December 02, 2008

Sidor operating on PDVSA funds

BNamericas reported that Venezuelan steelmaker Sidor, which is in the midst of being nationalized by President Mr Hugo Chávez is operating with money loaned by state oil company PDVSA.

Mr Pedro Rondón board member of Sidor said that "Everything the Venezuelan state has done at Sidor since nationalization, from a huge celebration party to a bonus payment for each employee, has been with PDVSA resources.”

He said that in early June, Sidor incorporated 890 external employees to payroll as part of an agreement that calls for the inclusion of 1,300 new employees. All employees have received the bonus, which is part of the latest collective contract.

Mr Rondón also said that “Although the company is paying the amount agreed upon with employees in the collective agreement established in May, the document has not been signed nor has it been recognized by the corresponding organizations such as the comptroller, the public prosecutor or the attorney general.”

He added that the situation is the result of delays in transferring 59.7% of Sidor's shares from the Ternium group to the Venezuelan government. He said that "The employer has to sign the contract and that has not been established yet because the shares haven't been transferred. So no decisions have been made.”