"A major sneaker factory laid off 100 employees", 28 December 2023

[...]

Bicontinentar...laid off 101 employees as a result of a lack of access to inputs during the second half of this year, which was capped by a drop in production orders from its customers after the change of government.

The company communicated the decision in a message to its employees. "In the last two weeks, we have had to make the regrettable decision to reduce our team by 101 workers," the firm said in a lengthy statement...

“In the second half of 2023, the company had firm orders for the months of September, October, November, and December, but difficulties in approving import licenses for inputs and making payments abroad generated significant delays in the supply chain for most of our customers. Even so, we have made the decision to maintain a full complement of staff,” he continued.

"Until the last week of November, the company had firm plans with a horizon of June 2024. Unfortunately, in the first week of December, several clients informed us that many of the pending supplies would not arrive, notifying us of the cancellation of orders," he added.

The company, responsible for producing brands such as Under Armour, New Balance, Diadora, Olylpikus, Montagne, Le Coq Sportif, Hush Puppies, Ringo, and Athix in the country, continues to operate with just over 300 employees, according to the union.

“They opted for the easiest thing employers do, which is lay off staff,” lamented Agustín Amico, general secretary of the Union of Footwear Industry Workers (UCITRA).

According to the union leader, negotiations took place with the company regarding the employees' departure. The firm offered voluntary redundancies, to which 101 employees signed up, but beyond the fact that the agreement implied a monetary increase in severance pay, the workers were left without the possibility of receiving unemployment benefits for their work.

“Our position was to continue the jobs, but the company, given the drop in orders, decided on the easier option. So, at least, we emphasized that with voluntary redundancy, people would lose the possibility of collecting unemployment benefits. As a result, they processed it as a dismissal with a 10% increase on top of the severance pay,” said Amico...

[Translation via Google Translate]