The Central Workers Union (CUT) has entered the labor dispute generated as companies cut costs due to the fall in oil prices, and is promoting a strike of oil workers. Meanwhile the USO oil workers union has the member vote to strike, and promises that they will take action very soon.
The new royalty system amounted to a substantial drop in resources received as royalties by producing departments, and now in Meta the estimate is that of the established budget, only 50% will come through due to the fall in oil prices. This and other royalty ready stories in our routine wrap up.
Corporate social responsibility (CSR) are exposed to deep cuts due to the oil price, although there are still many 2015 projects that already have their funding assigned, and Ecopetrol (NYSE:EC) has a steady flow of projects that have hit the press. These and other stories on CSR in our periodic summary.
Local commercial venders in Puerto Gaitán and Barrancabermeja are warning that already there is a steep drop off in their sales, as much as 80%, with the ability of contractors to pay their debts a rising concern. These and other stories in a weekly roundup following the impact of the fall of oil prices on the Colombian economy.
In a general assembly held last week, USO workers voted to authorize their directors to order a general strike which could affect, among others, Ecopetrol (NYSE:EC).
Like anyone in the oil industry, suppliers to oil services companies are feeling the impact of cost cutting and the fall in the price of oil, and in some cases, are feeling it even worse.
Despite the fall in oil prices companies must not simply “discard workers” and cut “the more fragile half” of the business to reduce costs says the Labor Minister Luis (Lucho) Eduardo Garzón.
The reaction to the oil price crisis has serious implications for the estimated 120,000 workers in Colombia’s industry, and has received a countering reaction from some of the industry’s most prevalent unions.
The rhetoric aimed at the Colombian Petroleum Institute (ICP) intensified this week with the union responding to accusations from the institute director that it is responsible for sabotage inside the facility.
Royalty spending could be cut by 30-40% due to the fall in prices, while the government insists they have a plan. Meanwhile the impact of the price fall is being felt in producing regions as warnings and speculation grows on job losses. These and other stories in this week’s summary of the impact of the fall in the price of oil.
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