Union says JBS could close plants in Argentina
19/03/2010
The leader of a trade union for meatworkers in Argentina, José Alberto Fantini, has warned that Brazilian packer and tanning group JBS could close "five or six" of its processing plants in Argentina if the government continues to block beef exports.
The Argentinean government announced a halt to beef exports on March 12 in an attempt to bring domestic prices under control.
Mr Fantini said he had been told by leading figures at JBS that plant closures in Argentina were a possibility unless the economic performance of the factories there improved. "Many jobs are at stake over this," Mr Fantini said.
JBS employs around 15,000 people in Argentina.
The union leader commented: "It's already been shown that the policy of halting exports does not work. What's much more pressing is that I have 15,000 people's jobs on my shoulders and I'd like to know who is going to look after those people."
In a recent letter to shareholders, the chief executive of JBS, Joesley Mendonça Batista, said: "In spite of having had to make some difficult decisions with respect to our business in Argentina in an attempt to return them to profitability, our business there has now been subjected to a series of unforeseen condition that looks likely to limit our growth and profitability there this year."
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