Petrotrin, OWTU agree on 9% over 3 years; strike called off

Petrotrin workers celebrate their victory (Guardian photo)

The Oilfields Workers Trade Union (OWTU) on Friday called off a strike that was scheduled to begin Saturday at Petrotrin after reaching a deal with the state energy company for a nine per cent wage increase for workers over the three year period 2008 to 2010.

Both sides reached the deal after marathon talks chaired by Labour Minister Errol McLeod.

The minister told reporters, "I think that our having come to this point is a signal ...of the broader national interest, the broader good and the determination to see the Petroleum Company of Trinidad and Tobago really set itself to work in the national interest."

OWTU president general Ancil Roget said the union is pleased. “I believe we have struggled for and settled a good package for all of the workers,” he told reporters.

The union started off the negotiations with a demand for a 75 per cent wage hike and accused the state energy company of being manipulated by Prime Minister Kamla Persad Bissessar in maintaining a wage cap of five per cent.

“We are satisfied that we have been able to break the mould of the five per cent. We think that it is significant," Roget said. He added that one highlight of the agreement is a commitment from the company to fill all outstanding vacancies within three months.

Petrotrin vice president Khalid Hassanali described the talks as “very tiring very arduous”. However, he admitted that it was worthwhile. "There is now in writing an accord which will define the way forward as well as improve the terms and conditions of our employees," he told reporters.

“We are grateful that the union...has been able to find enough common interest to allow us today (Friday) to sign this agreement”, Hassanali said. He added that he is looking forward “to the healing that would take place given the cut and thrust of the negotiations”. Going into the final talks Thursday Hassanali had said the company could not afford to double digit increase without putting itself in economic peril.

On Thursday Energy Minister Kevin Ramnarine said a strike would have a negative impact on the energy sector. The threat of a walkout had triggered a major rush by consumers to stock up on fuel, causing many gas stations to run out of supplies.

Ramnarine had been optimistic that both sides would reach a deal. “We are optimistic there will be a resolution to the issue there will be no need to take this thing to the level of strike. We remain optimistic,” Ramnarine told reporters attending the weekly post cabinet media briefing.

Under the terms of settlement, the workers will receive their nine percent increase over three years after the consolidation of Cost of Living Allowance (COLA).

The agreement gives 5,000 staff employees of Petrotrin the highest salaries in the sector with a general labourer receiving more than $12,000 a month; engineers will make more than $25,000 monthly. 

All employees covered by the agreement will receive retroactive payments. And both sides will focus on beginning salary negotiations for the new bargaining period.

Industry analysts had said a strike at Petrotrin would have taken a severe toll on the company and the national economy.