Iraqi Oil Workers to Strike Over Privatisation Law

Iraqi Oil Workers to Strike Over Privatisation Law

Tuesday May 8th 2007

Iraq's largest oil workers' trade union will strike this Thursday, in protest at the controversial oil law currently being considered by the Iraqi parliament. The move threatens to stop all exports from the oil-rich country.

The oil law proposes giving multinational companies the primary role in developing Iraq's huge untapped oilfields, under contracts lasting up to 30 years. Oil production in Iraq, like in most of the Middle East, has been in the public sector since the 1970s.

The Union, representing 26,000 oil workers, has held three previous strikes since 2003, each time stopping exports, for up to two days at a time. The announcement of the strike has spurred negotiations with the Ministry of Oil, which are ongoing.

Imad Abdul-Hussain, Federation Deputy Chair of the IFOU said: "The central government must be in total ownership and complete control of production and the export of oil". He warned against the controversial Production Sharing Agreements favoured by foreign companies, saying other forms of co-operation with foreign companies would be acceptable but not at the level of control and profiteering indicated in the current Oil Law.

Federation President Hassan Jumaa Awad al Assadi said: 'The oil law does not represent the aspirations of the Iraqi people. It will let the foreign oil companies into the oil sector and enact privatisation under so called production sharing agreements. The federation calls for not passing the oil law, because it does not serve the interests of the Iraqi people."

The Union is not alone in its' condemnation of the current oil law. Opponents of the law also include all of Iraq's other trade unions, a number of political parties, and a group of over 60 senior Iraqi oil experts.

Hassan Jumaa went on to say: "The federation calls on all unions in the world to support our demands and to put pressure on governments and the oil companies not to enter the Iraqi oil fields."

Union members are also demanding an improved salary structure and a distribution of land for building homes.