Mar 19, Colombo: The Ceylon Petroleum Corporation (CPC) says that the token strike organized by the joint trade union federation has been called off following a discussion between the management and the employees yesterday. However, the trade union sources say that they will initiate the strike action if the CPC fail to meet their demands which include a salary hike.

Among the other demands the Marxist party JVP backed trade union federation wants to take back the 107 petrol delivery stations that are now under the Treasury. However, the CPC is in the view that such a take over will null the agreement it has with the Indian Oil Company, the second player in the local market.

According to the CPC, when the matter was placed before the Attorney General’s Department, the AG has asked the parties to settle the matter amicably. Also, the CPC believes that it would be able to take control over the stations from January 2009.

Meanwhile, trade union sources explaining their decision to call of the strike action said the CPC management had agreed to most of their demands during the discussion held yesterday. Accordingly, the joint lubrication oil agreement will also be cancelled, and the proposed LP gas distribution will not be outsourced. Also, the CPC is to handle the ship oil bunkering business alone without any second party involvement.