Petroleum trade unions up in arms

By Lalin Fernandopulle

Petroleum trade unions came down hard on the government at a media briefing against the move by the government to hand over repairs of the colonial oil tank farm in Trincomalee to the Indian Oil Company (IOC).

Petroleum Common Workers Union Secretary and Petroleum Trade Union Alliance Convener D.G. Rajakaruna said the Trade Union Alliance is against the move by the government to enter into a joint venture with IOC to renovate and carry out operations of the oil farms when the Ceylon Petroleum Corporation (CPC) has the capacity to do it.

"We submitted a Cabinet paper in April this year and obtained approval for the renovation of the tanks by the CPC but the decision was revoked by the government and an agreement for a joint operation was inked with the IOC' Rajakaruna said.

He said the renovation is estimated to cost around US$ five million which the CPC can undertake. The tanks could be made a profitable business with oil to be distributed through trains to the North, East and North Central Provinces.

"The IOC has requested the Ministry of Petroleum to allow it to distribute fuel to CPC sheds from China Bay to the Northern and Eastern parts of the country", Rajakaruna said.

Trade Union members said by this move workers at the Kolonnawa oil storage facility will lose their jobs. They also said the operation of the 12 inch 16 loading arm and 11 tanks in Hambantota is to be handed over to China. The government has a US$ 100 million loan to be paid to China within 20 years.

'Our proposal to the government is to hand over the operation of the China Bay tanks and Hambantota to the CPC. We request to absorb employees at the CPSTL in Kolonnawa which is two thirds owned by the CPC and one third by IOC to the China Bay and Hambantota operations. Had the Sapugaskana oil refinery was modified and operated at least by 2012 having obtained a loan of US$ 1.6 in 2007 we would have settled the loan and made profits", he said.

A Trade Union Alliance member said they had submitted a proposal to the Petroleum Ministry last regarding these matters last week and said "if there is no favourable response we will resort to trade union action".

When contacted Minister of Petroleum Resources Development Chandima Weerakkody said the oil tank farm in Trincomalee was given to India in 2001 or 2002 and successive governmnets have had adopted that position as state policy.

"We cannot go back on that policy and the status quo followed by previous governments. Our strategy is not to give IOC 100 percent but to renovate the farm and make use of the facility to jointly share the profits. WE need to be mindful of agreements made with other countries. How we are going to do this is being studied by consultants", Weerakkody said.