Venepal Workers Fighting Spirit

On September 7, 2004, the owners of Venepal, a paper mill in Morón, Carabobo, in Venezuela, decided to cease their operations and not pay their 400 workers their wages. This is not the first time something like this has happened. A year ago the company took the same decision alleging financial difficulties. At that time the workers decided to occupy the premises in a bitter eleven-week struggle. Now they are demanding that the government nationalises the company and puts it under workers’ control and management. This is an extremely important struggle which could be crucial for the future of the labour movement and the Bolivarian revolution in Venezuela.

Venepal is one of the main producers of paper and cardboard in Venezuela and its installations are located in Morón, in the industrial state of Carabobo. At one point it employed a total of 1,600 workers, controlled 40% of the national market and was one of the main producers of Latin America in this sector. But the company’s management allowed the paper mill to slowly lose market shares and revenues. In April 2002, at the time of the short lived military coup against Chávez, some of its main shareholders were present at the swearing in ceremony for the new, illegitimate, “president” Pedro Carmona. During the bosses’ lockout against the Chávez government in December-January 2002-03 the workers resisted attempts by the employers to paralyse the installations.

Finally, on July 4, 2003, the company declared bankruptcy and left 600 workers without jobs and owing them large amounts in back wages. The company had accumulated debts of $100million with the banks (60% with international banks, Citybank and Chase Manhattan Bank, and 40% with national banks), and a further $30 million with the Venezuelan state in unpaid taxes, national insurance contributions, gas and electricity bills, etc.

Read more...