Notification letters and exit packages now being prepared for Petrotrin workers are expected to be distributed after talks between the company and union on this, but Petrotrin’s medical plan for 21,000 people will continue until year-end while experts work out how to sustain it beyond that.
These projections are made in documents from a Petrotrin management meeting, including advisers, last Thursday. The documents, copies of which the Sunday Guardian obtained, also stated there’s no attempt to sell Petrotrin’s refinery and no offers are coming, but there are offers/interest in the upstream business. The documents also detailed deliverables to be met during closure/transition.
Last Thursday’s management meeting concerned Government plans to temporarily shut down the company while its refinery transitions into permanent closure. This affects 4,800 workers, particularly the 1,700 refinery workers. Petrotrin’s board met with the Oilfield Workers’ Trade Union on Thursday also. Both parties are expected to meet again tomorrow when the union hopes to continue focus on its proposal for a lease to save the refinery.
However, Petrotrin officials said yesterday that preparations are still moving ahead on notification letters and exit packages for workers, “which the company will want to discuss with OWTU before they’re all finalised.”
After Monday’s talks with the board, the OWTU announced a protest march from Wednesday to Friday from South to North.
Documents from Thursday’s management meeting on the overall plan stated there will be “phased winding down” for the refinery, with accompanying increase in fuel importation. Phased exit will be based on resources as needed to manage the process safely/smoothly. This was projected at about “four months at the extreme end.”
For Exploration/Production, there will be similar phased transition. Documents projected that further communication on the situation will follow next week. It was also projected “Exit packages” will follow.
It was stated the pension/exit entitlements have been worked out. Officials said this will be discussed with the union. The plan projected that letters to workers will be distributed once union talks on the issue are completed.
Workers’ letters are planned to include calculation of exit packages. Letters are expected to be distributed in batches. The schedule for distribution “could” be out next week, the notes projected.
The meeting’s documents also stated, “Medical will remain unchanged till the end of the year. The existing approach will be maintained for the rest of the year. The best options are being looked at, re, how to sustain it after that. Experts are working on that right now. Basically, they are looking for a sustainable way to meet the commitment to 21,000 people in the medical plan.”
Documents stated the new organisation is “completely redesigned” and employees will have the opportunity to apply for jobs in this. It’s planned an “independent service provider” will be posting and advertising jobs for the new organisation.
All workers will be invited to apply. People would not have to wait for their exit letter to apply, it’s proposed.
“Jobs will be posted and everyone is invited to apply,” documents added.
Details on that aspect were projected to be given within the next few weeks and candidates will be selected based on whether they meet requirements and successful completion of assessment procedures.
Documents stated staff will be needed in Information Technology and Finance. People whose services will be required will be notified in coming weeks, it’s planned.
$25b debt for new company?
The documents also stated, “Upstream continues to be a diamond in the rough. Although it has lots of hidden problems, it also has a lot of potential. The difficulty was always how to make the refinery work. A deeper look was taken and the results didn’t improve.
“It made more sense to put capital into Upstream, which has been starved for years. If used wisely, there will be returns. World-class consultants were used to vet the decisions made. We will be saddling the new business with debt. Upstream is viable but more is being asked of it. It will be starting out with a $25 billion debt.”
Documents added, “A head has been hired for the Upstream business. A couple people have been selected for the transition team. They are very senior people in the organisation.
“Two new entities are being formed because of financial arrangements. This includes a “Legacy” entity for cleaning up, dismantling etc.”
At least one senior official at the meeting said Petrotrin was “as close to the brink” as they’d ever seen it in meeting its commitments.
The path for Petrotrin’s transition from closure to new organisation, as well as plans to assist communities in neighbouring San Fernando and environs and assist workers, is expected to be a core aspect of Finance Minister Colm Imbert’s 2019 Budget presentation tomorrow.
The Petrotrin situation also comprises a significant part of Opposition Leader Kamla Persad-Bissessar’s Budget reply next week Friday.