
The Government and unions yesterday agreed to disagree: Petrotrin’s refinery will be closed.
This was the final word from Government on the Petrotrin issue following yesterday’s meeting of 18 union leaders with Prime Minister Dr Keith Rowley and six Ministers.
At the end of almost three hours of discussions at the Prime Minister’s Office in St Clair, Government didn’t bend to the call by unions - including the Oilfield Workers’ Trade Union - to re-examine its decision to close the refinery.
Planning Minister Camille Robinson-Regis told reporters at a subsequent media briefing nothing new came out of the meeting.
“We have agreed to disagree - the refinery will be closed. It’a bitter pill to swallow, but it’s the best medicine at this time. Government has taken a decision that will affect 1,700 workers, but if we don’t it will affect 1.4 million citizens.
“The Prime Minister was firm in his view that what should be done now is discussions between Petrotrin’s board and the union on finding the best way forward for workers.”
The closure is now in the hands of the union and Petrotrin’s board guided by Energy Minister Franklin Khan - and the focus is on working out separation packages for workers, she explained.
OWTU members who awaited the meeting’s outcome outside the PM’s office expressed their views with statements, some placards and an effigy in a suit. OWTU president general Ancel Roget addressed them after the meeting. (See Page A5)
While he did so, Robinson-Regis told reporters, union members who requested the meeting came with an agenda topped by the Petrotrin issue. Other matters concerned daily rated pension, outstanding negotiations, payment of arrears and retrenchment.
She said Roget said the union had brought certain issues to Petrotrin’s board and the OWTU wanted Government to re-examine its refinery closure decision.
“But Government is firm in its view that that decision cannot be re-examined at this time. We’ve looked at this situation for over 18 months and now is the time for us to make the move to ensure the haemorrhaging occurring at the refinery doesn’t continue,” she added.
Robinson-Regis said the decision was looming for many, many years as Petrotrin had sustained losses and it was now necessary to protect the economy.
Robinson-Regis said the OWTU brought “nothing new” to the table yesterday and its plan for the company wasn’t different to the plan they’d presented previously.
Minister in the Finance Ministry, Allyson West, said the OWTU felt the refinery should continue, but didn’t say how an upgrade would be financed, how low-quality products could be handled or how to get over losses.
“Nothing suggested a viable alternative to the path we set,” she said.
Energy Minister Khan said the OWTU plan concurred with Government’s on Exploration/Production but was weak on a feasible alternative to closing the refinery or to bringing profitability in future or presently.
Robinson-Regis said the union admitted it had participated in discussions on the issue with Petrotrin’s board, yet wanted a change of Government’s decision. She said that wasn’t on the cards, since if it continued Government would lose at least $2 billion annually in the refinery business. She said Government understands the decision is “very far-reaching” but couldn’t maintain the status quo.
Robinson-Regis didn’t feel the outcome would heighten tensions. Rather, she had the impression the meeting produced a better understanding of each other’s position.
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The current objective now is for the Petrotrin board and union to work out separation packages for workers.
“The best T&T has to offer will be given to workers,” Planning Minister Camille Robinson-Regis said yesterday.
Robinson-Regis said Government didn’t want workers to feel “put upon,” and they would be taken care of. Fenceline communities near Petrotrin would also be properly dealt with, she said.
“We sincerely empathise with workers and understand this isn’t an easy situation. But we’re of the firm view Petrotrin’s board and OWTU will come to an agreement for the severance that will be the best T&T can offer at this time.”
Minister in the Finance Ministry West said Government would allocate significant proportions of the Public Sector Investment Plan’s projects “for the next year or two” to support San Fernando and environs to cushion the refinery closure blow.
Khan said in the restructured entity, “The thinking at present is that anybody would be able to apply for jobs, but we’ll use our best efforts to re-employ as many as possible of Petrotrin and/or the company’s former workers.”
Robinson-Regis said the National Tripartite Council’s general thinking—not specifically on the Petrotrin issue—was that once a worker has specific skills, they’d be more likely to be re-employed.
Khan said the “current thinking” is the refinery will be decommissioned “hopefully by the end of December.”
While it won’t be dismantled, stocks and plants will be preserved “in the event it has to be restarted.” He said a big cost could arise if assets aren’t preserved properly.
Khan said he never said the refinery would be sold. But he said Government will be willing to talk to anyone interested in making a proposal if they have commercial interest - for example, someone who has a crude oil source and needs a refinery and wants an arrangement with the state. The refinery will have salvage value at minimum or operational value based on what type of model anyone brings to the table, he added.