Colombian oil sector readies itself for national strike

As the Colombian oil sector prepares itself for a national strike by the USO, the industry’s largest labor union, Colombian regional newspaper La Nación published a revelatory conversation with several USO leaders. USO National Committee secretary José Marín Villarreal told the paper, “The USO is not striking because it feels like it. The massive layoffs and drama for thousands of direct employees, contractors, businesses, and communities in general that live off of the oil industry are undergoing very difficult moments together with their families and regions, like what is happening in Huila.”

Villareal does not buy the argument that the oil industry is actually undergoing a moment of “crisis.” He points to the fact that on March 26, Colombian state oil company Ecopetrol will give 7.8 trillion Colombian Pesos to the Colombian state and investors in Ecopetrol. He believes that the real problem with the Colombian oil industry is that the Colombian government uses Ecopetrol as its piggybank, leaving the workers and communities that depend on the company to foot the bill. With the Colombian oil industry committed to cutting costs through layoffs, these irreconcilable perspectives on the current state of the industry could lead to a long strike.

The news that energy sector labor union CUT will be joining the USO in its national strike will deeply worry the Colombian oil sector. These labor unions are striking to try to prevent the massive layoffs that are just starting to affect the oil industry.

In related news, Reuters published a follow-up piece on Colombian oil boomtown Puerto Gaitán, reporting on the end of the “oil party.” The report noted that officials up and down the ranks at troubled oil company Pacific Rubiales are looking to offload BMWs and other luxuries purchased during the times of plenty. These days in Puerto Gaitán, shops are closing and streets are empty.