CNN
March 30, 2001

Venezuelan oil strike ends

                  CARACAS, Venezuela (AP) -- Venezuela's oil unions ended a two-day
                  strike Friday without getting the pay hikes they demanded, and President
                  Hugo Chavez said future efforts to paralyze the nation's key oil sector are
                  doomed.

                  "The oil strike failed," Chavez said in a televised speech late Thursday. "They
                  (oil unions) can't do it any longer." Noting the strike was illegal, he warned that
                  anyone not reporting to work Friday risked being fired.

                  The strike ended officially at 6 a.m. (1000 GMT), though many of Venezuela's
                  40,000 oil workers had stayed on the job. Chavez took a hard line with the
                  strikers, refusing to grant a 15 percent raise for workers and deploying the
                  National Guard to key oil installations.

                  Chavez assured Venezuela's customers that supplies weren't affected. The South
                  American nation is the world's third biggest producer and a major U.S. supplier.

                  "Our clients, domestic and foreign, can stay calm," Chavez said.

                  Felix Jimenez, president of the biggest union, Fedepetrol, said that alleged
                  government "repression" was the reason for ending the strike. He said 120
                  protesters were arrested in the western state of Zulia, scene of clashes with
                  police Wednesday. Chavez put the figure at about 40.

                  The state oil monopoly, Petroleos de Venezuela SA, provides 40 percent of the
                  government's income, including $6 billion last year.

                  Oil workers earn an average of $484 a month. Petroleos de Venezuela argues it
                  can't afford more raises for workers who received 60 percent raises last year.

                  A four-day strike in October forced the state oil monopoly to grant 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 has faced continuous labor unrest. Chavez wants to oust
                  opposition labor leaders in union elections later this year.

                  Copyright 2001 The Associated Press.