MercoPress. South Atlantic News Agency

Autopart makers Yazaki leaving Uruguay

Union-sanctioned production stoppages affected the company's reliability to customers, it was explained

Japanese autopart makers Yazaki announced the closure of its two plants in Uruguay citing rising costs, leaving thousands jobless, it was reported in Montevideo. Some 1,200 workers have been affected by the measure. The plants in Las Piedras and Colonia, which had been operating since 2007, represented 300 and 900 jobs respectively. Yazaki's presence in the region will be shifting to Argentina and Paraguay.

The company said the decision had been made amid high operating costs coupled with frequent production interruptions caused by union strikes resulting in numerous deadlines missed. In turn, that practice affected the business' commitments to customers, it was explained.

“The high production costs of the operation in Uruguay ... significantly affect the possibilities of competing in global markets,” Yazaki said in a statement. In addition, “constant production stoppages ordered by the union, which jeopardize the delivery of products to Yazaki's customers.”

Laid-off workers will receive support finding new jobs, the company also said. Yazaki will cooperate with the Instituto Nacional de Empleo y Formación Profesional (Inefop) to offer training to mitigate the impact on employment. Workers will have access to recruitment consultancy and training opportunities.

In this scenario, Uruguay's main union (PIT-CNT) expressed its “absolute rejection” of Yazaki's “unilateral” decision affecting over 1,000 workers. In the union's view, Yazaki's not bargaining with its labor force showed disrespect for the country's efforts to provide a favorable working environment. The Yazaki plants represented a significant asset to the local economies in Las Piedras -in the department (province) of Canelones, where Uruguay's President-elect was mayor (governor) up until not long ago- and Colonia.

The PIT-CNT also downplayed the company's arguments about production costs and union disputes from a company present in 46 countries with over 240,000 employees worldwide.

Yazaki Colonia union leader Carlos Martínez said that “after having resumed the contract with Toyota of Argentina, the company's main client, with workers from Uruguay, the company suddenly announced that it will transfer its operations elsewhere.”

“In the last few months, there had been a decline in the company, as if they were letting it fall,” he added.