The emblematic Argentine tire manufacturer FATE SAICI, after of more than eight decades of production, announced the definitive closure of its production plant in Virreyes, San Fernando (Province of Buenos Aires), laying off 920 workers.
The decision was notified on Wednesday by the company itself and entails the immediate cessation of all production activities in one of the oldest manufacturers of the Argentine industrial sector. The board of directors stated that their decision is due to “changes in market conditions”, although the company did not offer any reconversion plan or alternatives for the continuity of production for the affected workers. It should also be noted that they have squeezed millions of dollars in profits from that plant for years.
“If FATE’s administration does not re-open the factory, we must demand the province government, headed by Kicillof, to provincialize it and to put it to work under workers’ control.”
The plant had been operating at a reduced production level and the company alleged a drop in domestic demand, harsher competition with cheaper tire imports and an adverse economic scenario as causes of the closure. The blow not only affects the 920 employees, but also a wide network of suppliers, distributors and stores involved in the production and marketing of tires in the country.
The news comes at a time of growing social tension, due to the labor reform discussion in Congress. This is a combination of a company that for years has made millions and now claims that is going through crisis, and a government that supports this. For their part, the workers who managed to enter the production plant, from the roofs of the company, call for support and solidarity for this struggle.
“The bosses of FATE in San Fernando have shutdown the factory and intends to lay-off more than 900 workers. They prevented workers from enterning, a group of them were able to enter anyways and took to the roof of the production plant. Milei’s “miracle” means thousands lay-offs and a labor reform.”
