Orders Fell Sharply By 70%, And The Nike Generation Factory Slash Jobs.

Nike declined to comment on the reasons for the reduction of Misiones factory orders. The representatives of Dass Group, a factory in Brazil, and representatives of UTICRA, a shoemaker Union, blamed Nike's footwear on layoffs. Orders fell sharply by 70%. Nike accounts for almost all the work of the factory.

In October 28th, Reuters reported:

Rumours of layoffs began to circulate among the workers in the Nike shoe factory.

When his revolving door key card failed, Aquino realized that the rumor was true.

Due to the intensification of the economic crisis, the orders of the American shoe and clothing giants stagnate, and the factory laid off hundreds of workers. For the most part of last year, the economic crisis had plunged the country into recession.

It turns out that the Nike factory in Argentina, one of the poorest parts of the country, is the tip of the iceberg.

Shoes and clothing factories slash jobs

According to government data, in all parts of Argentina, Last year there were nearly 16000 textiles. And workers in shoe factories are unemployed, including nearly 1/4 of shoemaking workers.

In El Dorado (Nordorado)'s Nike (Nike) plant, this means that even if the local manufacturing costs increase, the factory will also resist a wave of cheap imports. Industry experts say that as the cost goes up, imported products become a more attractive option.

Aquino said, "this is another work that the government should get rid of." Aquino first learned of this when he learned that factory boss Brazil Das began to lay off workers in December last year.

"I worked for the company for seven and a half years. With my income, I can eat and feed my family. Aquino said. "I can't let my children have other needs."

Nike declined to comment on the reasons for the reduction of Misiones factory orders, but said in a statement, "continue to evaluate our purchasing strategy according to seasonal demand and local market. "

Representatives of Dass Group, the factory responsible for the Brazil company, and the representatives of UTICRA, a shoemaker Union, blamed the layoff on Nike's footwear orders by a sharp drop of 70%. Nike accounted for almost all of the factory's work.

"Because of what is happening in the country, production has declined and consumption has dropped sharply. This is a reality that is affecting all of us. " Dario Vera, the factory representative of shoemaker union UTICRA, said.

He said that in recent years, under the Macri's more open policy, the industry has deteriorated, such as slashing red tape and requiring importers to seek authorization from the State Administration of taxation.

Vera pointed out that in December last year, Nike's rival Adidas (Adidas AG) cut orders, and another factory near Chi Weil Koi (Chivilcoy) near Buenos Aires closed.

He said the trade unions are supporting Fernandes now, and Fernandes has promised to support domestic industry and restore local consumption, and may withdraw some of the free trade policies of Macri in order to appease strong workers' unions.

The latest figures from the Ministry of labour show that The national textile and footwear industry employs 107000 employees, down 13% from last year. Footwear business fell by 23%.

Government data show that in the second quarter of this year, more than 1 million 400 thousand people in Argentina were unemployed, an increase of 200000 compared with the same period in 2018.

The daily output has been

23000 pairs reduced to 7000 pairs.

UTICRA's Eldorado plant representative Vera (Vera) said that in recent years, Nike (Nike) began importing 20000 pairs of shoes a day, almost the same amount as the factory once produced. The trade unions called for the formulation of circumvention of "indiscriminate imports".

"In El and Dorado, we live in a complex and tragic situation. Vera said: "in a less big city, away from big cities is a difficult situation for us."

The factory leader said that during the rush hour, the factory employed 1500 workers, producing 23000 pairs of Nike shoes for the domestic market every day. Nike's own map shows that it is the largest among 12 Nike manufacturers in Argentina. Now the output has been reduced to 7000 per day.

Since the start of layoffs in December last year, about 400 workers have been unemployed.

Flavio Eduardo Olea, the manager of human resources and labor relations at the plant, said the plant is seeking negotiations with Nike to stop such a slide, but the situation seems grim - reflecting Argentina's challenges to revitalizing growth.

He said: "only so many workers, the company will not be economically viable."

(reported by Cassandra Garrison and Marina Lammerytn; other reports of Nivedita Balu in Bangalore; Adam Jourdan and Edward Tobin editor)

Reading extension:

A large Nike plant will tell bye bye to Argentina and will fire 640 employees.

Argentina, October 2nd / Juana: DASS, a factory from Brazil, announced on Tuesday that it closed its factory in Eldorado, missiones province. At the same time, 640 employees will be laid off. The move is helpless. Due to the sharp decline in domestic consumption, Nike did not take delivery of goods and did not give them new orders.

At first, DASS had 1500 employees when it was brilliant in 2015, but now its consumption is shrinking. The central bank has raised interest rates sharply, making financing very difficult.

This reminds Vera that last year, the German brand Adidas also closed the Chivilcoy provincial factory, because foreign imports were more convenient, but the issue of dismissal has not been properly solved since last year. At the same time, Vera said, "we will try our best not to be fired, but the key lies in the communication between officials and companies. No one reminds us of the unemployment day, but in the past 4 years, 900 employees have lost their jobs. The unemployed colleagues can only look around for new jobs. It is really very angry. We are really very dependent on this job.

Argentina's clothing retail sales declined 17.6% in August, and the textile and garment industry is facing a worsening crisis.

Argentina China videos October 15th: according to the industry profile of this (2019) October, according to the CIAI (Argentina) garment industry chamber of Commerce (CIAI), according to the Confederacion Argentina de la Mediana Empresa (CAME) report, the purchasing power of the people of Argentina declined sharply. The retail sales of garments in August 2019 declined by 17.6%.

Although the clothing industry has tried not to inflate the price of clothing with inflation, sales are still falling. Argentina's National Bureau of Statistics (INDEC) pointed out that clothing sales in shopping centres and supermarkets decreased by 6.4% and 12.1% respectively in July 2019 compared with the same period last year.

CIAI said that the industry has been severely affected by the declining purchasing power of consumers and the high cost of Taxation and finance, which has seriously affected the normal development of the textile and garment industry. According to the INDEC report, the apparel industry in August declined by 12.8% compared with the same period last year, which has been declining for 15 consecutive months.

In addition, because of the decline in domestic clothing sales and the appreciation of the US dollar, the import of clothing was hit. According to customs statistics of the Arab countries, clothing import decreased by 35.8% in August (the number decreased by 31.8%, and the selling price dropped by 5.9%).

Argentina textile industry reduces 17 thousand employment opportunities in three years

According to the Argentina textile Promotion Foundation (Fundacion ProTejer), due to the low consumption and severe economic crisis in Argentina, Between 2015 and 2018, the employment opportunities in the textile industry decreased by 17 thousand.

Ariel Schale, executive director of ProTejer, said that the textile industry was getting worse and worse. We kept a close watch on it, but the results were always unsatisfactory. In the third quarter of 2018, compared with the same period in 2011, the decline in the textile and clothing industries was 37% and 33% respectively.

In September 2015, there were more than 115 thousand employees in the textile industry. However, in 2018, the number of employed persons dropped to 98 thousand. Only the business and trade union representatives thought the decline was mainly due to the opening of imports, the increase in local costs and the shrinking domestic market. Source: Reuters