CARACAS, Apr. 9 -- Venezuelan aluminum workers at the state-run industrial holding company Corp. Venezolana de Guayana are seeking to annul a supply contract with Glencore International AG, El Mundo said.
Workers at CVG units Alcasa and Venalum plan to seek legal action to nullify the contract with Baar, Switzerland-based Glencore, El Mundo reported, citing Henry Arias, director of a workers union at Alcasa. The contract stipulates selling 12,000 tons of aluminum a month to Glencore, the Caracas-based newspaper said today.
The accord harms the domestic aluminum industry because the company doesn't pay a value-added tax, Arias told El Mundo. Former Basic Industries and Mining Minister Rodolfo Sanz reportedly signed the agreement, the newspaper said.
Carlos Perezagua, a Glencore spokesman in Switzerland, declined to comment when contacted by Bloomberg News.