Another company fails due to Chavismo. Chavismo responds by "nationalizing" failed company

[GatoGordo]

Venezuela temporarily occupies Smurfit Kappa unit for workers' complaint
By Tibisay Romero

NATIONAL NEWS AUGUST 21, 2018

VALENCIA, Venezuela (Reuters) - The Venezuelan government temporarily occupied a unit of the global company Smurfit Kappa on Tuesday, following a complaint by a group of workers over the shutdown of one of its plants, the regulator said. Twitter and confirmed a union leader.



Several ministers and officers of the Armed Forces showed up at the company's facilities in the industrial city of Valencia, in the center of the country, to execute the measure in the company of a group of workers.

The Government will apply an "immediate" price adjustment of the company's products, after considering that there were "indiscriminate increases" so far this year that affect the value of items such as egg cartons, said the Minister of Labor, Eduardo Piñate, on state television from one of the plants.

Smurfit unexpectedly ordered collective vacations in July of some 173 workers, a measure that followed the closure of Kellogg, one of its best customers, said Rafael Rangel, a union leader at one of the company's plants that produces cardboard coils.

"This is a temporary take for three months, while investigating what happens in the plant," said the unionist. The unit was working in June to a quarter of its capacity.

Smurfit did not respond immediately to a request for information.

The government ordered a similar occupation at the Kellogg plant, when in May the company ceased operations without prior notice to its workers.

President Nicolás Maduro accuses the multinationals of participating in an economic war to overthrow him and days ago ordered a new minimum wage 60 times higher from September, among other measures with which he seeks to face the crisis and translate into an enormous burden for the companies.

The government accuses Smurfit of raising the price of its products by 2,300 percent in the year and plans to supervise food industries to "avoid speculation," Food Minister Luis Medina said on state television from the plant.

The government has not given inflation figures, but the International Monetary Fund estimates that it will reach one million percent this year, under a recession that led many of the multinational companies to operate at minimum levels.

https://lta.reuters.com/article/domesticNews/idLTAKCN1L61XS-OUSLD

Raising prices by 2300%... in a nation with 1,000,000 inflation? The HORRORS!

But, Maduro will go through the usual motions. Make great noise about vile "multinational corporations" who don't care about The Revolution, and now they will pay! He will confiscate this factory "for the workers!", and will put the employees back to work... manufacturing.... nothing. Because that is what Bolivarian Socialism produces. Nothing. The steal property and promptly destroy whatever potential profitability they had. Kimberly Clark, Bridgestone, GM, Kelloggs... all of these companies properties were confiscated for "The Workers" and Chavismo gave them title to the companies... and not a single thing is produced.

Here is what is REALLY going to happen at Smurfit. The employees will be deeded the company... a worker will be elected as company/peoples representative, and they will have lots of meetings (cheer-leading for Maduro) over the next few days about how they will get producing again... and within a fortnight, the factory will be stripped of everything of value, down to the wiring and toilet roll holders (there is no toilet paper to steal). Because there is nothing but worthless Bolivars to purchase raw materials. Nothing is manufactured in Venezuela, and foreign suppliers don't take "credit". Only currency that has value.

And next month, it will be ANOTHER company that Chavismo will nationalize "for the workers!" Repeat ad nauseaum.

[GatoGordo]

1. More nationalizations on the way... courtesy of the "rat out the profiteers" campaign

After receiving insistent complaints through the 0800-LoJusto in relation to indiscriminate increases by the chain Farmatodo, I have ordered a preventive measure of price adjustment in all its stores nationwide. # TownWorkhamAway

Link to tweet

We will not allow the increase of prices without any justification, it is our task to attend each case, for this we ask the collaboration of all the people making their denunciations through the ways that we have recently announced. # TownWorkhamAway

Link to tweet

In the same way, we call on businessmen and merchants to abide by the law and all the regulations in force to avoid being sanctioned. We are on the street in defense of the Economic Recovery Plan! Together we will win! # TownWorkhamAway

[GatoGordo]

2. Like clockwork...

Smurfit Kappa says the government of Venezuela took control of local unity
By: Reuters | Wednesday, 08/29/2018 12:11 PM

08-28-18. - Smurfit Kappa Plc packaging company said Wednesday that the Venezuelan government had taken temporary control of its business in the oil country for 90 days.

The company said that, as a result, its unit has not been able to handle its affairs in a normal manner. The company also reported that the Venezuelan government had arrested two of its employees. "We are making every effort to ensure their release," said Smurfit Kappa.

https://www.aporrea.org/economia/n330595.html

So for the next 90 days, Chavismo will pilfer what it can of value from the factory and offices, then "gift" to the employees the company. In true Marxist fashion, the workers will be offered the "means of production". And it will produce nothing.