Output Falls by Third As Oil Workers Strike
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SUBSCRIPTION MONDAY, APRIL 18, 2016 RAJAB 11, 1438 AH www.kuwaittimes.net Warring Yemen Rescuers dig Nail polish Nadal defeats sides signal for victims and mascara: Monfils for optimism for after Ecuador Beauty brands ninth Monte Kuwait 5talks quake kills7 235 eye40 up Iran Carlo20 title Output falls by third Min 19º Max 35º as oil workers strike High Tide 08:56 & 20:42 Low Tide Govt vows legal action, unions defiant • MPs support workers 02:08 & 15:03 40 PAGES NO: 16848 150 FILS Doha meeting ends without oil freeze Saudi-Iran tensions scupper deal DOHA: A deal to freeze oil output by OPEC and non-OPEC producers fell apart yesterday after Saudi Arabia demanded that Iran join in despite calls on Riyadh to save the agreement and help prop up crude prices. The development will revive oil industry fears that major pro- ducers are embarking again on a battle for market share, especially after Riyadh threatened to raise output steeply if no freeze deal was reached. Some 18 countries, including non- OPEC Russia, gathered in the Qatari capi- tal of Doha for what was expected to be KUWAIT: Striking Kuwaiti oil workers arrive at the oil union’s headquarters in Ahmadi yesterday to protest alleged pay cuts and plans to the rubber-stamping of a deal - in the privatize parts of the oil sector. — Photo by Yasser Al-Zayyat making since February - to stabilize out- put at January levels until Oct 2016. But By B Izzak, A Saleh and Agencies on Twitter that “average production reached 1.1 duction was also cut from 930,000 barrels a day OPEC’s de facto leader Saudi Arabia told million” barrels in Kuwait yesterday. Daily pro- to just 520,000 barrels. DOHA: UAE energy minister Suhail participants it wanted all OPEC members KUWAIT: Thousands of Kuwaiti oil workers duction in OPEC’s fourth largest producer is nor- “Thousands of workers began their strike,” the Mohamed Al-Mazrouei (left) walks to take part in the freeze, including Iran, began an open-ended strike yesterday in protest mally around 3.0 million barrels per day. Azemi oil workers union chief Saif Al-Qahtani said, out of a meeting with Kuwait’s which was absent from talks. Tehran had at plans to cut their wages, action which saw the also said natural gas production was at 620 mil- adding that production had been partly halted Finance Minister and acting oil minis- refused to stabilize production, seeking state’s crude production plunge. A spokesman lion cubic feet, down from Kuwait’s daily average but without clarifying which sites were affected. ter Anas Al-Saleh yesterday. — AFP Continued on Page 13 for the Kuwait Oil Co (KOC), Saad Al-Azemi, said of more than 1.3 billion cubic feet. Refinery pro- Continued on Page 3 MONDAY, APRIL 18, 2016 LOCAL Saif Al-Qahtani Head of the Oil and Petrochemical Mohammad Al-Hajri, Head of Kuwait National MP Hamdan Al-Azmi makes comments to reporters. MP Abdullah Al-Tamimi addresses reporters. Industries Company workers’ union makes a statement. Petroleum Company workers’ union speaks to the press during the strike. Oil workers go on strike to protest cutbacks KUWAIT: Kuwaiti oil workers arrive at the union headquarters in Al-Ahmadi, 35 km south of Kuwait City, yesterday to protest alleged pay cuts and plans to privatize parts of the oil sector. Hit by the sharp drop in crude prices on world markets, Kuwait is introducing a new payroll scheme for all public employees and wants to include the country’s 20,000 oil workers, which would mean an automatic cut in wages and incentives. —Photos by Yasser Al-Zayyat and Fouad Al-Shaikh MONDAY, APRIL 18, 2016 LOCAL Output falls by third as oil workers strike Continued from Page 1 Saleh responsible for the failure to find a settle- to the country’s interests, reputation or status, ment to the dispute with oil workers, but reject- warning that any threat cannot be condoned by “Observed since 7:00 am (0400 GMT), this ed any shocks in the vital sector. all sincere and honest Kuwaitis. open-ended strike will continue until the work- He called for MPs to intervene by holding a ers’ demands are met,” Qahtani said. special parliamentary session in order to discuss Union Chiefs Stick to Guns The Cabinet strongly criticized the “unaccept- the catastrophic consequences of the strike. Qahtani and a number of other syndicate able” strike, calling it a “clear violation of the law”, Huraiji said he supports the fair demands of the chairmen stressed that the strike would contin- entrusting involved agencies with taking legal workers but there are some unfair demands that ue unless protestors’ demands were met. He also action against “unacceptable practices”, and with cannot be supported. MP Youssef Al-Zalzalah stressed that importing foreign laborers was bringing to accountability anybody involved in said he believes that the two sides should sit against the law. Speaking at a press conference the disruption of the country’s vital utilities. The together and settle the dispute peacefully, but he attended along with other heads of oil government also urged Kuwait Petroleum Corp also declared his support for workers to demand employees’ syndicates, Qahtani demanded hold- (KPC) to mobilize the manpower needed to their rights through strikes. ing those responsible for creating the problem ensure continued production. KPC said it closed in the first place. He also called for ‘Kuwaitizing’ a petrochemicals plant in order to use the gas to Cabinet Condemns Strike the oil sector. supply power generation plants and insisted The Cabinet earlier urged all workers in the Chairman of the Petrochemicals Industries that domestic supplies and exports will not be oil sector to show responsibility, sacrifice and employees’ syndicate Farhan Al-Ajmi excluded affected. positive responsible response by giving top pri- the likelihood of dissolving any of the oil unions Minister for Cabinet Affairs Sheikh ority to the country’s higher interest. It added or syndicates. “Such a decision will not be made Mohammad Al-Mubarak Al-Sabah said the strike that it had monitored, with deep sorrow and unless by bullying and violating the law,” he was illegal as union members had refused to much resentment, the negative effects of the stressed, noting that if the syndicates were dis- negotiate ahead of the stoppage. “The members of the union were contacted by the committee headed by the manpower bureau. The members of the union refused to talk with them and went on strike. So they are in breach of Kuwaiti law. They can’t strike without this (attempt at discus- sion),” he said. “With the oil price being what it is, and the fact that oil income is a huge part of the (national) income, it is very difficult if not impos- sible for the government to provide new finan- cial incentives.” Workers Demonstrate Thousands of workers gathered for demon- strations at the start of the workweek in Ahmadi, where KOC has its headquarters. Protesters held signs reading “Stop meddling with the rights of the oil sector workers!” and “We will not allow you to take away our rights,” witnesses said. Adel Al-Fadhel, a spokesman for the Kuwait Oil Company Workers’ Union, said workers opted to picket after government officials failed to meet the unions’ demands to keep workers’ salaries and benefits untouched from government cut- backs. “The government rejected our proposals strike carried out by some oil workers since it tar- solved through litigations, unionists would file and is adamant on decreasing employee gets the disruption of vital oil facilities. counter lawsuits. salaries. This is not acceptable,” he said. The Cabinet also reviewed relevant dimen- “Our boards of directors can be dissolved by On Saturday, the union turned down an sions, aftershocks, details and estimated losses, either an extraordinary general assembly or by appeal from acting oil minister Anas Al-Saleh to not to mention other direct and indirect harms having the concerned ministry file a case before call off the strike. Hit by the sharp drop in crude that could damage the country’s reputation and the comprehensive court,” he explained, under- prices on world markets, Kuwait is introducing a status. It voiced full respect for all constitutional lining that the strike would not be called off new payroll scheme for all public employees and rights, mainly public liberties and freedom of even if the oil syndicates and unions were dis- wants to include the country’s 20,000 oil work- expression, but within specific limits set out by solved, because thousands of oil employees ers, which would mean an automatic cut in law 11/1996, excluding the right to strike due to were taking part. He also dismissed threats of wages and incentives. its serious impacts on public interest. prosecuting those taking part in the strike As the strike began, KPC spokesman Sheikh This makes the strike an illegitimate act and because of their numbers. “The organizing com- Talal Khaled Al-Sabah said that the national oil violation of the law, which should be resolutely mittee decided carrying on with the strike conglomerate had activated an “emergency addressed and requires legal action against all despite the pressure on us,” he underlined. plan” to ensure that local and international mar- those involved, the Cabinet said. However, it Chairman of the KOC employees’ syndicate kets were not affected by the walkout. “Export operations are going ahead as planned and (KPC) is capable of responding to major interna- tional market demands, based on agreements with clients,” he said in a statement published on the KUNA news agency’s website.