EL UNIVERSAL

While the Venezuelan government was negotiating with Argentinean steelmaker Ternium Sidor to set the sum it would pay to nationalize the company, the National Assembly moved to declare the steelmaker a public utility. 

In a decree reviewed by the Venezuelan Parliament on Tuesday afternoon, steelmaker Siderúrgica del Orinoco (Sidor) "was declared a social interest public utility. This company is oriented to strengthen the strategic national industrial sector transforming iron into different steel products such as plates, blocks, bars, flat plates, induction coils, wire rods, reinforcing bars, among others. It also deals with distribution and marketing, as well as the creation and protection of jobs."      

The move -a prerequisite for expropriation- also included declaring Sidor shares as public utility. The lawmakers loyal to President Hugo Chávez stated that their move was also aimed at advocating the workers', retired people's, and pensioners' rights.

Regarding these aspects, in one of the decree points, the Venezuelan Parliament argued that the move met "the state's duty, which is to promote the strengthening of the industry and activities favoring endogenous development. This creates and protects sources of employment with an additional high national value."

The decree added that Sidor was one of the country's largest conglomerates, stressing that its activities were very important to foster industrial development, as the steelmaker transforms iron into steel to provide food, construction, and automobile sectors with products.

The National Assembly pointed out that Sidor productive activities have been affected by the labor conflicts caused by the collective bargaining agreement currently under discussion. Despite the Venezuelan government's participation in such negotiations, a harmonious environment has not been created to solve the conflict yet.

Consequently, it is "the state's duty to guarantee the continuity of productive processes of the national industry and ensure their interconnection to strengthen strategic areas."

The Venezuelan Congress' move came parallel to a meeting in the Vice-President's Office to set the compensation to be paid for Ternium shares.

The meeting ended late Tuesday with no agreement. Another meeting was scheduled for next week. 

Earlier on Tuesday, President Chávez advised his negotiators to reach an agreement with Argentina's Ternium Sidor based on "consensus, and a win-win proposal."

Consequently, he added that "a negotiating delegation is discussing financial and economic issues and other aspects. We have always wanted to make decisions in good terms, to reach agreements and consensus. That is our motto and that is how it worked with state-run telecommunications company Cantv."

During the cabinet meeting Tuesday, Chávez highlighted the need to reach consensus. Last Sunday, however, he warned Sidor executives he would expropriate the plant if no accord on the company's price was reached by Tuesday.

According to Venezuelan authorities, Chávez's government is prepared to pay USD 800 million for 60 percent of Sidor shares.

Translated by Karina Gómez P.