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4 July, 2001In spite of promising employment security, the German transnational will shut down its plant.
ARGENTINA: According to the IMF-affiliated autoworkers' union SMATA, workers at ZF, the German multinational which mainly produces supplies for the auto industry, learned in April 2001 that the company intended to cease its production activities in Argentina. The decision was made even though earlier ZF had signed an agreement with the union that employment would be maintained at least through December 31, 2002.
The union said the company had promised job security in return for employees accepting to work at its new plant 100 km away from the previous one and to devote over 75 extra hours a month in commuting time.
Now, not only are the workers losing their livelihood, but the company says it will only offer them 50 per cent severance pay.
Among the various initiatives taken by SMATA and its general secretary, José Rodriguez, to seek a solution to the situation have been meetings with Labour Ministry officials, plus a protest organised in front of the German Embassy in Buenos Aires, during which a list of claims was submitted for German government authorities.
When workers staged a peaceful attempt to prevent dismantling of equipment at the plant, ZF changed the name of the facility to Pilar Partes S.A., then claimed it was a new company and fired all 128 workers.
The IMF has forwarded this information to its metalworkers' affilate in Germany, IG Metall, along with SMATA's request to persuade the German-based transnational to lean on its Argentine subsidiary to respect the job security agreement it signed with the union in Argentina.
The union said the company had promised job security in return for employees accepting to work at its new plant 100 km away from the previous one and to devote over 75 extra hours a month in commuting time.
Now, not only are the workers losing their livelihood, but the company says it will only offer them 50 per cent severance pay.
Among the various initiatives taken by SMATA and its general secretary, José Rodriguez, to seek a solution to the situation have been meetings with Labour Ministry officials, plus a protest organised in front of the German Embassy in Buenos Aires, during which a list of claims was submitted for German government authorities.
When workers staged a peaceful attempt to prevent dismantling of equipment at the plant, ZF changed the name of the facility to Pilar Partes S.A., then claimed it was a new company and fired all 128 workers.
The IMF has forwarded this information to its metalworkers' affilate in Germany, IG Metall, along with SMATA's request to persuade the German-based transnational to lean on its Argentine subsidiary to respect the job security agreement it signed with the union in Argentina.