Petrom unions in talks with OMV head

Austrian OMV Group chairman Wolfgang Ruttenstorfer is to meet today with Liviu Luca, the chairman of the Federation of Free Independent Unions (FSLI) within Petrom to discuss employment contract issues prior to the signing of the privatisation contract, Dan Ioan Popescu, Economy and Trade Minister announced. He added the signing of the privatisation contract for Petrom would occur “within ten days at most”.

The Government Decision endorsing Petrom’s privatisation contract is due for publication in the Official Gazette some time in the next few days. The deal that will turn OMV into the owner of 51% in Petrom is worth about 1.4bn euros.

“The chairman of OMV’s Board of Directors, Wolfgang Ruttenstorfer, will discuss about employment contracts with Liviu Luca in Bucharest on Tuesday (today i.e.); I will be there, too,” Dan Ioan Popescu said.

Liviu Luca runs the unions within Petrom and Petrom’s Employee Association. He is one of the most powerful union leaders in Romania.

When contacted by Ziarul Financiar for comment, Liviu Luca said he knew nothing of the “meeting” and that the seller, namely the State, might not discuss about Petrom employees’ future on behalf of the unions.

“I know of no such meeting with OMV. I only met Ruttenstorfer once but discussed nothing essential. This will be the first meeting, not the last. The seller may sells shares but it is no union to be able to discuss SNP’s employees’ future. Everybody must play strictly by the rules,” Liviu Luca told Ziarul Financiar.

He added the contractual relation between Petrom and Petromservice, the company controlled by Petrom employees run by Liviu Luca could not be brought into question

“The Petrom-Petromservice contract (for the maintenance of the oil company’s installations) was closed two years ago and is valid until 2007,” Luca specified.

Petromservice, an oil service and equipment company, split from Petrom two years ago. It employs more than 15,000 people and is held 50% by Petrom’s Employee Association, with the remaining shares owned by approximately 8,500 shareholders. Petromservice made 12.7 million euro gross profit in 2003 while turnover amounted to 178 million euros. It is 70%-75% dependent on Petrom’s orders. Petrom employees headed by Liviu Luca own about 0.5% – 1% in Petrom. They may buy up to 8% in this company at the same price as paid by OMV for its stake.

They have built a strong position on segments other than oil industry such as banking, insurance, constructions, agriculture and mass media over the last few years.

adrian.mirsanu@zf.ro