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NewsJanuary 10, 2003

CARACAS, Venezuela -- Thousands of Venezuelan bank workers stayed home Thursday to support a nationwide strike seeking new presidential elections, further weakening the currency as analysts speculate the government of Hugo Chavez is running out of money...

CARACAS, Venezuela -- Thousands of Venezuelan bank workers stayed home Thursday to support a nationwide strike seeking new presidential elections, further weakening the currency as analysts speculate the government of Hugo Chavez is running out of money.

Chavez supporters, meanwhile, attacked several opposition demonstrations at oil facilities around the country.

"Chavistas" attacked a rally outside a refinery in Cardon, 270 miles east of Caracas, wounding a 40-year-old worker and a 28-year-old demonstrator, said Luis Arends, a civil defense worker.

In Caracas, gunmen fired several shots and threw tear gas at an opposition rally. No one was hurt, and the rally resumed. There were no arrests.

Chavez supporters armed with machetes and sticks also prevented a demonstration at an oil facility in central Carabobo state, Globovision television reported. A minor clash occurred at a plant in Barinas state.

The nationwide strike begun Dec. 2 has shut thousands of businesses and brought Venezuela's vital oil industry -- a top U.S. supplier and once the world's fifth-largest exporter -- to a virtual halt. Gas has been imported.

Thursday's job action by bank workers started a two-day strike. Private banks have opened just three hours a day since Dec. 9.

Amid fears of a banking crisis, Venezuelans bought U.S. dollars and sent the bolivar currency to a record low of 1,593 to the dollar -- 5 percent weaker than Wednesday and down 12 percent for the year.

Analysts speculated Chavez's government may have to devalue the bolivar to balance its budget. Most government income is in dollars and a weaker bolivar would increase its domestic spending power.

Spokesmen at three of Venezuela's largest banks -- Banco de Venezuela, Banco Provincial and Banesco -- said 80 percent of the country's nearly 60,000 bank employees stayed home Thursday.

"There are so many unions representing so many different banks. There's no single voice grouping them together. That's why there are employees at some branches," a Banco de Venezuela executive said on condition of anonymity.

Jose Torres, president of the opposition-aligned Fetrabanca workers union, urged employees to provide only minimal services -- such as processing payments for medical emergencies -- Thursday and Friday.

Antonio Alvarez, a 46-year-old school teacher, said closed banks simply meant "another sacrifice the people are willing to make for early elections."

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But Luis Boris, secretary general of the pro-government bank workers union Sutrabanca, accused bank owners of closing doors without consulting workers.

As he left a bank in downtown Caracas, public accountant Nestor Cabrera denounced Thursday's stoppage as "part of a coup attempt" against Chavez.

A nonbinding referendum on Chavez's rule is scheduled for Feb. 2 and strike leaders want him to schedule elections in 30 days if he loses the referendum.

Chavez, who was elected in 1998 and re-elected in 2000, argues the vote will not affect his mandate. He insists the constitution only requires him to respect a possible recall referendum in August, the midpoint of his six-year term.

Strike organizers -- including leaders of the nation's largest trade union, its business chamber and the state-run oil company -- claim their protest is as strong as ever.

Many factories, industrial parks and supermarkets remained closed.

But there were signs many are tiring of the strike. There was more traffic on streets and sidewalks and in shops, restaurants and markets.

Public schools opened for the new year, but poor attendance caused many to shorten hours. Some private schools delayed classes.

Efforts by Chavez to jump-start operations at Petroleos de Venezuela S.A., or PDVSA, have been partially successful.

Crude output is estimated at about 400,000 barrels a day, compared with the pre-strike level of 3 million barrels. Exports, normally 2.5 million barrels a day, are at 500,000 barrels a day.

Energy Minister Rafael Ramirez claimed PDVSA will produce 1.5 million barrels a day by next week and will reach full capacity next month. Dissident PDVSA workers doubt production can reach those levels.

Ramirez acknowledged accidents have occurred in Maracaibo Lake, a hub of this South American country's oil industry. Ramirez insisted oil spills in the lake, which is laced with pipelines, are not uncommon.

"Accidents normally happen in the lake and we have to resolve that," he said.

Dissident PDVSA executives claim 31 accidents have occurred, including oil spills in Maracaibo Lake and a fire at the El Palito refinery.

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