Feels like 80s all over again
Topic: EnergyOn 9/11 (Seriously?!) Valero HQ in San Antonio, Texas decided to shut down Valero Aruba Refinery. Most sub-contractors and its workers have abandoned the refinery-premises.
The scenes we saw last week remembered us vividly about the big devastation was when Lago Aruba Refinery shut down its doors back in the 80s after having been in Aruba for about 60 years.
As a population we vowed never to be dependent on one company anymore for our income. However, we let another transnational company to become dominant yet again. Not as dominant as the old Lago, but still plenty dominant.
Although most people working at the refinery are foreigners – as a consequence many have no choice but to abandon the island – there’s still a substantial group of local labor force in need of jobs.
On paper, Aruba’s labor market can absorb all the people being laid off right now. One-on-one that is. The problem is that the knowledge of the workers coming out of Valero is mostly technical. Aruba’s current services economy will prove to be difficult to absorb all. In fact in practice it’s going to be difficult to find relevant jobs for many ex-Valero workers.
With general elections being celebrated next week (September 25) this issue has become a bitter campaign theme for many political rivals. Whether or not this is ethical, fair or smart I’ll leave in the middle.
Reality is that the next administration will be faced with some challenges.
- Find a new buyer/operator for the refinery in St. Nicolas.
- This buyer needs to be willing to pay taxes, like all other small/medium sized companies in Aruba.
- Limit or stop the pollution during the refining process.
- Invest in the facilities.
- Invest in the people.
This is going to be very difficult. Not many oil giants are willing to meet these “demands”. Most of the time oil refineries aren’t big believers of win-win.
September 17th, 2009 Read more » valero