News - Some CPSTL employees defy Asantha

The blazing crisis in the Ceylon Petroleum Corporation (CPC) and its subsidiary – Ceylon Petroleum Storage Terminals Ltd (CPSTL) is set to be further aggravated with trade unionists reportedly deciding to defy the orders of the new CPSTL Chairman Asantha de Mel.

According to the settlement reached with the unions, some 3,500 employees who worked for the CPSTL will now be brought under the control of the CPC, with some 300 employees who were directly recruited to remain under CPSTL control. Mr. de Mel’s appointment as CPSTL Chairman triggered a fiery controversy resulting in the trade unions being assured that the CPSTL would be amalgamated to the CPC in keeping with a promise given to the unions during the run up to the presidential election.

A trade union spokesman said at a meeting with CPC trade unions last week, Prime Minister Ratnasiri Wickremanayake had assured the unions the CPSTL – which was formed during the former UNP administration – would be amalgamated with the CPC.

Even after a settlement was reached between CPC trade unions and the presidential advisor on trade union affairs Bharatha Lakshman Premachandra on Tuesday and the cabinet paper submitted on Wednesday the functions of the subsidiary and the duties of Mr. de Mel as CPSTL chairman were yet to be worked out.

On Friday Mr. de Mel visited his new office at Kolonnawa while some of the union members openly questioned his appointment and his future duties.

A trade unionist was seen arguing with Mr. de Mel. He asked Mr. de Mel why he should assume duties at a time when the government had promised to amalgamate the CPSTL and the CPC within the next six months.

Mr. de Mel said he was prepared to discuss any issues with the trade unions and work along with them.

Trade Union officials told The Sunday Times that the unions had given ample time for President Mahinda Rajapaksa and the government to resolve the controversy surrounding Mr. de Mel’s appointment, before deciding on strike action this week causing a major fuel crisis in the country, inconveniencing thousands of motorists and dealing another crippling blow to the economy.

Petroleum Industrial Employees Union President D.D.S. Mahinda said the appointment of the new CPSTL chairman was an unnecessary expense and when an institutions overhead expenses rise, so would the price of oil. He said the unions identified the problem and as a means of taking appropriate action the unions prepared and submitted a proposal to President Mahinda Rajapaksa on July 6 asking him to reassess the new appointment to the CPSTL.

“But we did not receive a reply. We gave the government until July 19 to resolve this matter but seeing that no action was being taken, we had to do something to protect our people,” Mr. Mahinda said.

With the prevailing uncertainty over the duties of Mr. de Mel, until the amalgamation is completed a fresh controversy is now brewing regarding the agreement reached between the unions and Mr. Bharatha Premachandra. Despite Petroleum Resources Minister A.H.M. Fowzie challenging the agreement reached between petroleum sector trade unions and Mr. Premachandra, petroleum workers have vowed to abide by the agreement and continue with their work. The tussle between Mr. Fowzie and Mr. Premachandra took a turn for the worse when the Minister insisted that the agreement had no validity and that Mr. Premachandra had no authority to negotiate a settlement.

“The agreement reached with Mr. Premachandra is invalid and should not be considered by the Trade Unions. It has been set out without proper authority”, Mr. Fowzie charged. Among the conditions of the settlement was an assurance given by Mr. Premachandra on behalf of the President that problems arising from Mr. de Mel’s appointment would be resolved within a two-week period to the satisfaction of the trade unions. The CPC trade union leaders said they would not take any drastic action within the next two weeks as they considered the assurances given were by the President himself and expected the government to abide by the agreement. Mr. de Mel told The Sunday Times he was appointed by the President and that even previously he was a member of the CPSTL board and his appointment as chairman was unquestionable.

“There will be no change when it comes to the workers as they still work for the CPSTL though they are attached to the CPC,” he said.

Admitting that the petroleum industry was new to him Mr De Mel said he was brought in to manage the CPSTL because of his experience in the garment industry”.

Mr. de Mel said those working for the CPSTL would come under his authority while being employees of the CPC.

The controversy over the functioning of the CPSTL was expected to figure prominently during the coming week amid warnings by the trade unions they would resort to trade union action, if the government failed to keep its promises.