KUWAIT: Andrew Brown, upstream director of Shell (R), Jason Bordoff, Professor of professional practice in international and public affairs and founding director of the Centre on Global Energy Policy at Columbia University and Mohammad Husain, President and CEO of Equate Petrochemical Company attend the fourth Kuwait oil and gas conference yesterday. —Photo by Yasser Al-Zayyat

KUWAIT: A senior oil sector official said that plans are in place to face a planned strike by oil sector employees. "We have alternative plans prepared in case a strike takes place," said Khaled Al-Asousi Deputy CEO for Support Services at Kuwait National Petroleum Company (KNPC) during the Kuwait fourth oil and gas conference yesterday. He explained that the plans include utilizing the services of workers who are not on strike, as well as expatriate labor forces and retirees.

The oil sector's labor unions announced yesterday that they would stage a 'total strike' next Sunday after negotiations with the government regarding a plan to cut their wages and benefits broke down.

At a meeting this Sunday, the government told unions that it would suspend plans to limit oil sector employees' benefits, as well as plans to include oil sector employees in a major payroll restructuring program that is currently under study, pending further negotiations. Unions responded, however, by rejecting the government's offer. Instead, they demanded abolishing the entire proposal to cut workers' benefits, and a complete exclusion of oil sector employees from the so-called 'Strategic Alternative Payroll System.'

Protest

On March 22, more than 3,000 workers and the heads of several unions from Kuwait's different oil companies gathered at the oil workers trade union's headquarters in Ahmadi to protest government plans to cut benefits and possibly wages, known as the 'Strategic Alternative'. "We are against the Strategic Alternative which is death to the oil sector. Also we are also against privatizing the oil sector which will put us under the power of private sector and the businessmen," the union's head Saif Al-Qahtani said at the protest. Several lawmakers including MPs Faisal Kandari and Abdullah Al-Tamimi were present at the unions' rally.

The Kuwait Petroleum Corporation (KPC) had announced plans two months ago to study austerity measures that included reducing spending, cutting annual bonuses and pay increases. The Strategic Alternative as outlined by the government sets up a new salary scale that would 'unify' the salaries and benefits for all state employees, including those in the strategic oil sector. Diplomats, doctors, military personnel and engineers would be excluded under the current proposal. Kuwait's government-run oil sector employs nearly 20,000 workers.

Proposal rebuffed

Deputy Premier and Acting Oil Minister Anas Al-Saleh announced the oil sector's labor unions' rejection of the proposal. In a press statement following his meeting with representatives of the unions earlier this week, Saleh, also Minister of Finance, stated that he has proposed freezing the decisions taken by KPC recently and forming a joint committee to negotiate a compromise in a matter of 10 days.

"Unfortunately, they have turned down the proposal and insisted on abolishment, not freezing of KPC decisions," he said. The minister added that they have also demanded a written pledge to exclude the oil sector for a draft of what was being called the "strategic alternative" law on unifying civil servants salaries and wages.

Saleh added that he could not offer such a pledge as the National Assembly, not he nor the Oil Ministry, has the sole right to include or exclude any sector in the 'strategic alternative' law. He, however, stressed that the he would defend oil sector laborers' rights in the National Assembly.

The minister urged unions members to prioritize Kuwait's higher interests and to show the spirit of patriotism and involve in constructive negotiations for a deal instead of going on strikes that would harm the state, its different sectors and citizens.

He emphasized keenness on listening to their views and concerns about KPC's decisions, which were taken as a part of broader measures to reform the state budget. He added that the decisions are meant to reform budget without jeopardizing employees and workers' financial rights. - Agencies