Chavez vows to send Venezuela's striking oil workers to prison

CARACAS, Venezuela -- President Hugo Chavez threatened Sunday to jail the thousands of oil workers fired for leading a two-month strike against him.

"Fired is nothing! Many of them should go to prison for sabotaging the Venezuelan economy," Chavez said of the more than 9,000 workers dismissed from the state oil company Petroleos de Venezuela S.A.

Chavez's threats came one day after more than 100,000 Chavez opponents protested in Caracas in support of the fired oil workers. Thousands more held a similar protest Sunday in the state of Carabobo, 66 miles west of the capital. A bicycle protest also was organized in Caracas.

The nationwide strike was called Dec. 2 to demand Chavez's resignation or early elections. But its leaders -- business groups, labor unions and leftist and conservative politicians -- agreed to end the protest last week in all areas but the crucial oil industry.

Chavez on Sunday called the strike an "oil coup" aimed at unseating him by paralyzing the oil industry, which provides half of government income. He also has accused his opponents of waging an "economic coup" which he blames for Venezuela's deteriorating economy.

Chavez quoted Venezuela's penal code when threatening the oil workers. He said saboteurs had intentionally damaged ports and oil installations and, if convicted, could face up to five years in prison.

The strike cost Venezuela over $4 billion, the government estimates.

Chavez claims most of PDVSA's 40,000 employees have returned to work. Strike leaders deny this, saying thousands refuse to return until the president rehires the 9,000 fired and agrees to an early vote on his rule. Another 900 oil workers were fired over the weekend, the newspaper El Universal said Sunday.

Oil industry recovering

Still, Venezuela's oil industry -- the world's fifth-largest supplier before the strike -- is slowly recovering. Chavez, who spoke at the El Palito refinery in western Venezuela, said production is at 1.9 million barrels a day. This compares to over 3 million barrels a day before the strike and just 200,000 at the height of the strike.

Dissident executives say production is nearer 1.3 million barrels a day, and gasoline shortages continue. Motorists wait hours outside the few stocked service stations, while many citizens have taken up cycling to save on fuel.

Several thousand Chavez foes rode bicycles around Caracas on Sunday in support of the fired oil workers. Many wore red, yellow and blue clothes -- the colors of Venezuela's flag.

The president also threatened to use newly imposed currency controls against his opponents. Controls were imposed last week to shore up the weak bolivar and to slow capital flight. The bolivar was fixed at 1,600 per U.S. dollar and a currency administration office was set up to distribute dollars.

Critics say the controls are Chavez's latest attempt to restrict freedom in Venezuela. They fear dollars will only be available to government sympathizers and not to the opposition.

Chavez, a former paratrooper who led a failed military coup in 1992, was elected to power in 1998 and re-elected in 2000. He promised to wipe out the corruption of previous governments and redistribute the country's vast oil wealth to the poor majority.

But after four years in power, unemployment is approaching 20 percent and inflation has soared over 30 percent.

Peace talks organized by the Organization of American States have failed to end the bitter standoff between the government and opposition.