Motiva lets loose some contractual workers
Published January 09, 2009 07:04 pm – Some contractual workers have recently been laid off from the Motiva Refinery expansion project due to an ongoing cost review by the company.
By David Ball The Port Arthur News
PORT ARTHUR Some contractual workers have recently been laid off from the Motiva Refinery expansion project due to an ongoing cost review by the company.
Were sending some contractual workers home. We have enough (workers) to meet the need. We have the cost review going on and we want it to be accurate, Motiva spokeswoman Verna Rutherford said.
Rutherford said she wanted to dispel rumors thousands of contractual workers were laid off from the project. The numbers arent that high, she said. Were having a close review to assure we have a tighter cost control on the projects, she said.
Rutherford didnt have a total number of workers idled because there is a different number of workers on different days. Theres a lot of anxiety out there and we want to give assurance, but we cant tell unless we get a clear picture, she said.
Motiva Enterprises announced on Christmas Eve changes are being implemented to assure tighter control of costs on the $7 billion refinery expansion project that began in December 2007. Demand for Motivas products is down, and with lower demand, margins are also down, making tight cost control essential.
The resulting downside includes fewer contractual workers on the job for the next several months when cost analysis are evaluated. The bright side is the construction will continue and the project has made a significant economic impact in the area, Rutherford said.
She said it was a combination of issues why the company is doing the cost analysis the overall economy and the response and demand of products are down as well as margins are down.
dball@panews.com
