Orders Fell Sharply By 70%, And Nike Made Huge Layoffs In Brazil'S Foundries.

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 the layoff on Nike's footwear orders by 70%. Nike almost accounted for all of the factory's work.

In October 28th, Reuters reported that rumors of layoffs began to spread among 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, nearly 16000 workers in textile and shoe factories lost their jobs last year, including nearly 1/4 shoemaking workers in all parts of Argentina.

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 procurement strategy based on 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 labor department data show that the textile and footwear industry employs 107000 people, 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."