Uruguay's Loss is Argentina's Gain - Yazaki is shutting down operations in Uruguay

[earlyretirement]

Uruguay's Loss is Argentina's Gain - Yazaki is leaving Uruguay

The Japanese multinational Yazaki has announced the closure of its operations in Uruguay after 17 years of presence in the country. This decision will significantly affect the local economy and employment in the region.

Yazaki will close its two plants in Uruguay, located in Las Piedras and Colonia. The production that was carried out in these facilities will be transferred to the company's plants in Argentina (Escobar) and Paraguay (Mariano Roque Alonso).

The company has cited two main reasons for its departure from Uruguay:

High production costs
High union conflict

The closure of Yazaki's operations in Uruguay will leave more than 1,000 direct employees without work. This will have a significant effect on hundreds of Uruguayan families who depend on these jobs.

The PIT-CNT, Uruguay's main trade union center, has expressed its "absolute rejection" of Yazaki's unilateral decision to close its plants in the country. The union considers that this determination was made without proper negotiation and without considering alternatives to maintain jobs.

Yazaki has operated in Uruguay since 2007, benefiting from a free trade zone regime. The company is a major manufacturer of automotive components, with a presence in 46 countries and more than 240,000 employees globally.

The closure of Yazaki in Uruguay poses challenges for the government and unions in terms of protecting workers' rights and the need to implement policies that promote national industry. The situation also highlights the importance of maintaining a balance between union demands and business competitiveness to attract and retain foreign investments.

PIT-CNT ante el cierre de operaciones de la empresa YAZAKI en Uruguay - PIT-CNT

El PIT-CNT expresa su absoluto rechazo a la decisión unilateral de la multinacional Yazaki de cerrar sus plantas en Uruguay, dejando en la calle a más de 1.000 trabajadores y afectando de manera directa a cientos de familias uruguayas. Esta determinación, tomada sin la debida negociación y sin...

www.pitcnt.uy

 

[Uncle Wong]

But I would have to believe that Argentina's production costs have gone way up too over the past year. Salaries have gone up I read that are matching inflation so this trend will continue in Argentina too. I would have thought Argentina's unions are just as bad as Uruguay's aren't they?

 

[import export]

But I would have to believe that Argentina's production costs have gone way up too over the past year. Salaries have gone up I read that are matching inflation so this trend will continue in Argentina too. I would have thought Argentina's unions are just as bad as Uruguay's aren't they?

They will probably have the same issues in Argentina. Argentina's labor unions are known to be a PITA. But maybe Yazaki has a good grasp on Argentina since they already are operating here. And the fact that they just left Uruguay might give them some bargaining power in the future to show Argentina they are willing to just leave.

Argentina has strict rules on paying employees if you shut down operations.

 

[TonyTigre]

....The PIT-CNT, Uruguay's main trade union center, has expressed its "absolute rejection" of Yazaki's unilateral decision to close its plants in the country. The union considers that this determination was made without proper negotiation and without considering alternatives to maintain jobs.

That's the problem with unions nowadays. They forget who the real owner of a company is.

...The situation also highlights the importance of maintaining a balance between union demands and business competitiveness to attract and retain foreign investments.

Yes, fight for better wages, more benefits and better working conditions, but owners of companies take a lot of financial risks and also demands a certain level of profitability. Employees will always think the owners are not sharing enough of their profits, no matter how big their wage increases are, that complaint would never go away. It's like people asking the rich to pay their fair share of taxes. No amount will ever be enough or fair in the eyes of some people.

... And the fact that they just left Uruguay might give them some bargaining power in the future to show Argentina they are willing to just leave.

That's a very good point. Also, if they give in to one union's demands, they will have to give in to all. If they make an example out of one, maybe the others will think twice about being too greedy with their demands. That would apply globally.

 

[Blockchain]

That's the problem with unions nowadays. They forget who the real owner of a company is.


Yes, fight for better wages, more benefits and better working conditions, but owners of companies take a lot of financial risks and also demands a certain level of profitability. Employees will always think the owners are not sharing enough of their profits, no matter how big their wage increases are, that complaint would never go away. It's like people asking the rich to pay their fair share of taxes. No amount will ever be enough or fair in the eyes of some people.


That's a very good point. Also, if they give in to one union's demands, they will have to give in to all. If they make an example out of one, maybe the others will think twice about being too greedy with their demands. That would apply globally.

Workers always think that owners are making too much. Even if they are losing money workers will still complain. I like that this company has left Uruguay. Now maybe they will think twice about complaining. I am surprised as I thought Uruguay was more first world vs. Argentina. I did not think unions were worse there than Argentina. I have heard horror stories about Argentina.

It sounds like they know what they are getting into as they are already in Argentina.

 

[Larry]

Uruguay's Loss is Argentina's Gain - Yazaki is leaving Uruguay

The Japanese multinational Yazaki has announced the closure of its operations in Uruguay after 17 years of presence in the country. This decision will significantly affect the local economy and employment in the region.

Yazaki will close its two plants in Uruguay, located in Las Piedras and Colonia. The production that was carried out in these facilities will be transferred to the company's plants in Argentina (Escobar) and Paraguay (Mariano Roque Alonso).

The company has cited two main reasons for its departure from Uruguay:

High production costs
High union conflict

The closure of Yazaki's operations in Uruguay will leave more than 1,000 direct employees without work. This will have a significant effect on hundreds of Uruguayan families who depend on these jobs.

The PIT-CNT, Uruguay's main trade union center, has expressed its "absolute rejection" of Yazaki's unilateral decision to close its plants in the country. The union considers that this determination was made without proper negotiation and without considering alternatives to maintain jobs.

Yazaki has operated in Uruguay since 2007, benefiting from a free trade zone regime. The company is a major manufacturer of automotive components, with a presence in 46 countries and more than 240,000 employees globally.

The closure of Yazaki in Uruguay poses challenges for the government and unions in terms of protecting workers' rights and the need to implement policies that promote national industry. The situation also highlights the importance of maintaining a balance between union demands and business competitiveness to attract and retain foreign investments.

PIT-CNT ante el cierre de operaciones de la empresa YAZAKI en Uruguay - PIT-CNT

El PIT-CNT expresa su absoluto rechazo a la decisión unilateral de la multinacional Yazaki de cerrar sus plantas en Uruguay, dejando en la calle a más de 1.000 trabajadores y afectando de manera directa a cientos de familias uruguayas. Esta determinación, tomada sin la debida negociación y sin...

www.pitcnt.uy

Things have to be very very bad if they are coming to Argentina and think it will go better. My guess is within 1-2 years they will also pull out of Argentina. Costs here are skyrocketing. I would have to believe many companies will leave Argentina too as salary levels spiral out of control.