Acindar (ArcelorMittal Group) layoff/work suspension for 200 employees next week

[earlyretirement]

Acindar, a steel company controlled by the ArcelorMittal Group, has agreed with the Metalworkers Union (UOM) on a staggered worker suspension scheme to avoid massive layoffs.

The measure will initially affect about 200 employees next week and could extend to a total of 970 workers by the end of the year.

This decision is due to a significant decline in steel production and demand, which has been exacerbated by the 25% tariffs imposed by the United States on steel and aluminum imports.

Suspended workers will receive a reduced salary: 80% of their salary in February, 78% in March, and 75% from April to December 2025.

Additionally, Acindar has implemented a voluntary retirement plan that has received 200 applications and plans to eliminate another 200 indirect positions through the renegotiation of agreements with contracting companies.

 

[Betsy Ross]

I would love to get "suspended" and not have to work and make 80% of my salary. Only in Argentina.

 

[Uncle Wong]

Acindar, a steel company controlled by the ArcelorMittal Group, has agreed with the Metalworkers Union (UOM) on a staggered worker suspension scheme to avoid massive layoffs.

The measure will initially affect about 200 employees next week and could extend to a total of 970 workers by the end of the year.

This decision is due to a significant decline in steel production and demand, which has been exacerbated by the 25% tariffs imposed by the United States on steel and aluminum imports.

Suspended workers will receive a reduced salary: 80% of their salary in February, 78% in March, and 75% from April to December 2025.

Additionally, Acindar has implemented a voluntary retirement plan that has received 200 applications and plans to eliminate another 200 indirect positions through the renegotiation of agreements with contracting companies.

Wait what?? They don't have to work and get 80% of their salary the first month and then 75% for the rest of the year and the workers don't have to work? Seems like a great deal to me! Then they aren't considered laid off? Why don't they just lay them off?

 

[earlyretirement]

Wait what?? They don't have to work and get 80% of their salary the first month and then 75% for the rest of the year and the workers don't have to work? Seems like a great deal to me! Then they aren't considered laid off? Why don't they just lay them off?

Yes it seems crazy but Argentina has really really whacky laws. Also the unions are very strong but mostly it's financially related.

When you fire an employee in Argentina you have to pay all kinds of payments. Some unions are very strong but some are as many as 2 months of salary for every year they worked for you. "Suspensions" lower costs gradually by paying reduced salaries. The immediate payment of severances can be massive if you have employees that have worked for you for a long time.

Also many industries can be cyclical where things turn around later in the year. There can be whiplash with how quickly things change. It is a pain to re-train workers so ramp up time is slow if you have to rehire new workers and train them.

Also, down downplay government influence on things. Many times the government will really discourage big layoffs.

But it can be very complicated. I formally owned the largest property management company in Argentina. After the big financial crash of 2008 tourism brutally slowed down to Argentina. I had a ton of employees and even though things drastically slowed down, I always joke it would have cost more to fire them. I had almost no turnover and most everyone had worked for me for 7-8 years. So it would have cost a fortune to fire any. I figured things would turn around and they did but it was painful some months paying tens of thousands of dollars each month.

But when things turned around again it was good that I didn't fire anyone at all.

 

[MikeRoss]

Yes it seems crazy but Argentina has really really whacky laws. Also the unions are very strong but mostly it's financially related.

When you fire an employee in Argentina you have to pay all kinds of payments. Some unions are very strong but some are as many as 2 months of salary for every year they worked for you. "Suspensions" lower costs gradually by paying reduced salaries. The immediate payment of severances can be massive if you have employees that have worked for you for a long time.

Also many industries can be cyclical where things turn around later in the year. There can be whiplash with how quickly things change. It is a pain to re-train workers so ramp up time is slow if you have to rehire new workers and train them.

Also, down downplay government influence on things. Many times the government will really discourage big layoffs.

But it can be very complicated. I formally owned the largest property management company in Argentina. After the big financial crash of 2008 tourism brutally slowed down to Argentina. I had a ton of employees and even though things drastically slowed down, I always joke it would have cost more to fire them. I had almost no turnover and most everyone had worked for me for 7-8 years. So it would have cost a fortune to fire any. I figured things would turn around and they did but it was painful some months paying tens of thousands of dollars each month.

But when things turned around again it was good that I didn't fire anyone at all.

Wow very interesting. Thanks for explaining it. That is nuts people get so much severance. But this situation above seems like a great scenario because workers are getting 75% of their salary to do nothing. I assume some will get other jobs so this seems like a great situation for them vs. getting fired. And hopefully things pick up again so they can come back to work.

 

[Avocado]

Wait what?? They don't have to work and get 80% of their salary the first month and then 75% for the rest of the year and the workers don't have to work? Seems like a great deal to me! Then they aren't considered laid off? Why don't they just lay them off?

You have to understand Uncle these people are struggling to get by as is. So you may think they are getting paid to do nothing but that reduction in income will hurt them. Many will not be able to find another job or make up for that lost income.

 

[MikeRoss]

You have to understand Uncle these people are struggling to get by as is. So you may think they are getting paid to do nothing but that reduction in income will hurt them. Many will not be able to find another job or make up for that lost income.

Fair point. But they could probably go out and easily do Rappi or something. I have a friend that does Rappi. I was surprised as they do not own a car but they just have a bicycle and do deliveries that way. No overhead at all. I was surprised as I thought it was all motorcycles but he said many of his friends just ride their bikes.

 

[earlyretirement]

Nestle also announced they are also doing forced vacations for March. The prices are too high for domestic consumption and they refuse to lower prices. And with the inflated artificially high peso it is too expensive for exports too. 80% of its production is for exported products but with the peso so high they are going to face issues. More companies will face the same issues with the peso being so high.

https://twitter.com/x/status/1889867635610800435

 

[Wally]

Nestle also announced they are also doing forced vacations for March. The prices are too high for domestic consumption and they refuse to lower prices. And with the inflated artificially high peso it is too expensive for exports too. 80% of its production is for exported products but with the peso so high they are going to face issues. More companies will face the same issues with the peso being so high.

https://twitter.com/x/status/1889867635610800435

The exchange rate is going to be an issue with exports.

 

[Cheap Bastard]

The exchange rate is going to be an issue with exports.

That is what I don't get. If the dollar goes to 600 to $1 like Milei says it could go to who the hell is going to come to Argentina or buy it's exports??