CNN
March 29, 2001

Chavez deploys National Guard to deter oil strike violence

                  CARACAS, Venezuela (AP) -- National Guard troops guarded oil refineries,
                  government buildings and major highways across Venezuela on
                  Thursday to deter more violence in a two-day-old strike by oil workers.

                  Adding to the climate of instability were strikes by teachers and steel and
                  electricity workers as well as a standoff at the Central University of Venezuela
                  between radical students demanding the overthrow of university leaders and
                  others defending the institution's autonomy. The radical students are supporters
                  of Venezuelan President Hugo Chavez.

                  Venezuela -- the world's third largest oil exporter and a major U.S. supplier --
                  says exports won't be affected for seven days during the strike, which it says is
                  illegal. The state oil monopoly, Petroleos de Venezuela SA, provides 40 percent
                  of the government's income, some $6 billion last year.

                  Oil Minister Alvaro Silva Calderon said the monopoly was functioning
                  "adequately," with managers filling in for strikers. Unions claimed 37,000 of
                  40,000 workers were striking; the monopoly insisted Thursday that most were
                  on the job.

                  Black-bereted troops toting submachine guns directed traffic and stood at key
                  intersections of the capital overnight, but they withdrew before the morning rush
                  hour. Troops in camouflage fatigues and a small armored vehicle guarded the
                  Supreme Court; guardsmen patrolled highways and oil refineries in western
                  Venezuela. PDVSA's Caracas headquarters also were sealed off.

                  A guard spokeswoman said she didn't know how many troops were deployed.

                  Chavez ordered the deployment late Wednesday after workers clashed with police
                  while trying to stop trucks from leaving two gasoline distribution plants in the western state
                  of Zulia. Union leaders claimed 64 workers were arrested and four injured. The figures
                  couldn't immediately be confirmed.

                  "Strike! Strike! Strike!" chanted hundreds of defiant workers outside a monopoly building
                  in Zulia on Thursday. Other workers threatened to block shipping in Maracaibo
                  Lake, a major export route.

                  Venezuela's oil workers earn an average of $484 a month and want a 15 percent pay hike
                  promised to public employees last year by presidential decree. Petroleos de Venezuela
                  says the decree didn't apply to oil workers. It also argues that it can't afford more raises
                  for workers who received 60 percent raises last year.

                  A four-day strike in October forced PDVSA to fork over benefits that increased
                  the cost of crude by 70 cents a barrel. The average cost of a barrel of
                  Venezuelan crude was $20.97 on March 23. Prices are reported weekly.

                  Chavez's two-year-old government inherited $21 billion in unpaid state wages
                  and pensions, and he has faced continuous labor unrest. He wants to oust
                  opposition labor leaders in union elections later this year.

                  Copyright 2001 The Associated Press.