Chavez orders food seizures

The strike has caused some food shortages

Venezuelan President Hugo Chavez says he has ordered the army to seize private food stocks and food production plants that the general strike has rendered idle.

"[The army] must prepare plans to take military control of the food factories and stocks," he told supporters on Friday, according to the news agency AFP.

I warn insensitive business leaders: make no mistake with Hugo Chavez, because I will not let the people die of hunger

President Hugo Chavez

The president accused the strike organisers - who are calling for new elections - of "seeking to murder the Venezuelan people through hunger".

In another effort to break the 40-day strike, which has resulted in fatal street clashes, crippled oil exports and dented currency rates, Mr Chavez said he was sacking 1,000 employees of Venezuela's main state-owned oil company.

'Traitors'

The strike's main impact has been on oil production, but it has also forced shortages in staple food, forcing Venezuela to import flour, milk and rice.

Mr Chavez announced his new plan to commandeer food stocks and production plants to thousands of cheering supporters - dubbed "Chavistas" - in the town of San Carlos, 200 kilometres southwest of the capital Caracas.

Striking bank workers joined opposition protests on Friday

"Garrison commanders must be ready to take military control of production plants, silos and stocks," he said.

"I am prepared to take any action that has to be taken to guarantee food distribution.

"I warn insensitive business leaders who are hoarding corn, bread flour, rice: make no mistake with Hugo Chavez, because in keeping with the constitution... and my duties as president, I will not let the people die of hunger," he said.

He called strike leaders "traitors and saboteurs".

But an opposition representative angrily denied responsibility for the food shortages.

"We urge the military to realise that the only culprit for the shortages of food is the government," said Rafael Alfonzo, head of the Cavidea federation of food industry companies.

Workers fired

Also on Friday, President Chavez said he had "fired" 1,000 staff in a bid to "clean up" oil firm Petroleos de Venezuela (PDVSA).

That number includes 300 managers whom he has already fired. At least 30,000 of the company's 40,000 workers have participated in the strike.

The support of PDVSA workers has been central to the strike

He said thousands of millions of dollars would be required to restore the oil industry.

The strike by PDVSA workers has slashed Venezuela's oil output and revenues from crude sales, raising fears that the government would be unable to balance its books.

Some observers have speculated that Mr Chavez would order a devaluation of the bolivar to ease the government's cash crisis.

And the country's currency plunged earlier this week after bank workers announced a 48-hour strike, beginning on Thursday.

Currency recovers

Individuals and companies, concerned that the devaluation might occur when banks were closed by the strike, clamoured to change their bolivars into US dollars.

But while leaders of finance unions proclaimed the success of the bank strike, many branches have remained open.

The bolivar gained 5.3% against the US dollar to stand at 1,511 to US$1 on Friday, the country's central bank said.

Some 80% of bank workers participated in the bank strike on Thursday, the union Fetrabanca said.