Finally in August 2004 the referendum was called to decide whether Hugo Chavez should continue his presidency or leave office immediately. The result was 58% in support of the president, 42% against. This represented a convincing public endorsement of the reform programme and five months later Hugo Chavez signed a land decree intended to break up large estates and redistribute them to the landless. Support for the reform programme translated into electoral success in 2005, and a boycott of the elections by opposition groups led to a national assembly filled with Chavez supporters.

The Confederation of Workers of Venezuela (Confederación de Trabajadores de Venezuela) (CTV) and National Workers' Union of Venezuela (Unión Nacional de Trabajadores de Venezuela) (UNT) are the two main rival trade union federations. Historically, CTV actively fought against military coups and represented a symbol of democracy. However it has become increasingly dominated by members supportive of Democratic Action (AD) and sympathetic to the interests of the oil industry and the media.

CTV called the general strike in April 2002 in protest against the president and in collaboration with the lock out organised by Fedecámaras. Subsequently many trade unions broke away from CTV and set up UNT. This new federation supports the reform programme and leadership style of the president.

Venezuelan society remains deeply divided on the reform agenda and further non democratic attempts to depose the president are possible. Powerful domestic and foreign interests are deeply opposed to the reform programme and supporters will need to see real results in alleviating poverty and inequality in Venezuela if they are to continue voting for Hugo Chavez and MVR. In the meantime oil revenues are being used to finance domestic social programmes aimed at poverty reduction and foreign policy initiatives.

Copyright: Rowena Slope 2006 (Redkite Research)