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Union to stay quiet on reform until decision is made
Source: Bnamericas
Date: 04/15/2008 00:00
The Mexican oil workers union (STPRM) plans to remain silent on President Felipe Calderón`s energy reform proposal until lawmakers either approve or reject the bill, an STPRM spokesperson told BNamericas.
The union internally is evaluating certain aspects of the proposal, the spokesperson said.
Calderón`s proposal seeks to grant state oil company Pemex greater fiscal and operational autonomy, allowing private sector participation in downstream, strengthening energy regulator CRE, setting up a national oil commission and altering the federal public administration law.
CHANGE IN BOARD
One measure included in the reform proposal that could impact the union would add four new members to Pemex`s board of directors.
The four "professional advisers" would be appointed by the president, bringing the total number of government-appointed members to 10. The remaining five would still be appointed by STPRM.
As such, the measure would decrease the union`s power on the board.
"It`s not the immediate objective [of the proposal] and they`re certainly not going to sell it that way, but I`m sure they know that`s one of the consequences and are very happy with it, so they`re spinning it as anti-corruption," Pamela Starr, an expert on Mexican politics, told BNamericas.
Starr added that the proposal would change the board`s nature with the creation of the five-member oil commission that would carry out the board`s current leadership role.
George Baker, director of Houston-based consultancy ENERGIA.COM, questioned both the board`s existing leadership and the impact reform would have.
"There`s no real industrial or strategic guidance from the Pemex board so you can add 100 people if you want, but it`s not going to change its decision-making ability. This is a good idea to strengthen Pemex`s board, the execution of this good idea is questionable," Baker said.

