Venezuela Takes Over Closed Clorox Factory

[Bacchus4.0]

http://abcnews.go.com/International/wireStory/venezuela-takes-closed-clorox-factory-25794553

Venezuela's government said Friday night that it has seized a factory belonging to Clorox just days after the U.S. company announced it was shutting down operations in the country due to its economic crisis.

Vice President Jorge Arreaza said on national television that the socialist government acted to save some 800 jobs after what he called the illegal abandonment of the country by the Oakland, California-based Clorox Co.

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Pro-government lawmakers accustomed to railing against foreign multinationals also denounced the move, which came as Venezuela struggles with widespread shortages of basic consumer products. The legislators pointed to government accounts saying the U.S. company had received $21 million since 2004 as a sign Clorox has been repatriating profits at the expense of Venezuela's development.

While other businesses have complained about economic mismanagement in oil-rich Venezuela, Clorox is the first major company to pull up stakes. The company has been operating in the country since 1990 and is a major seller of home cleaning products to Venezuelans.

[jwirr]

1. Too bad we did not do that when all our jobs moved offshore. And it is not too late to start now.

[Bacchus4.0]

2. The government is now responsible for the operation of the plant including procuring

supplies and raw materials, and production of the cleaning products. We'll see how that goes.

[jwirr]

3. Went pretty well for GM.

[Bacchus4.0]

4. How's it going in Venezuela?

The labor tensions have left a government that prides itself on its proletarian bona fides sitting uncomfortably on the management side of the bargaining table — and its representatives sounding increasingly like the beleaguered executives they have spent much of their political careers opposing.


When it was founded, Ciudad Guayana and its state-run heavy industries were Venezuela’s best hope for breaking the country’s overwhelming dependence on crude oil exports. It had all the right ingredients: iron ore, bauxite and gold; timber and farmland; and huge rivers to supply cheap hydropower for smelters and factories.

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The steelmaking company at the core of the Ciudad Guayana project, Sidor, produced a record 4.3 million tons before it was nationalized by Chávez in 2008.

Today, most of its furnaces sit cold, deprived of raw materials, new technology and reliable labor. The last contract for its 14,000 steelworkers expired four years ago.

http://www.washingtonpost.com/world/the_americas/a-once-proud-industrial-city-now-a-monument-to-venezuelas-economic-woes/2014/09/03/4b577663-8f18-4841-b958-eee3b8830ad9_story.html

[jwirr]

5. There one has to remember that there is outside (US) interference in their progress. What should

happen here is that after it is taken over it should then be turned over to the workers. We already have companies that are worker owned.

[Bacchus4.0]

6. Yep, thats fine but the US isn't forcing Venezuela to expropriate

On the other hand businesses are leaving Venezuela because its not profitable there so looks like its the government produces or nothing, lots of nothing going on there.