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Employees of the American tire manufacturer Goodyear will each receive ten tires as part of the payment of their labor rights. The company is closing its operations in Venezuela.
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Several foreign companies have left the country, saying they have difficulties with the economic crisis Local and Economic Burden of the United States States
Venezuelan President Nicolas Maduro accuses political opponents and the United States of promoting an "economic war" against his government. In a statement on Monday, Goodyear said he had "made the difficult decision to stop producing tires" in Venezuela, according to the Reuters news agency.
"Our goal was to maintain operations, but US sanctions made that impossible," the company said. The company said it was paying workers' fees, including the delivery of tires.
Image caption
Logo Goodyear at a workshop in Caracas, Venezuela
But why would employees accept this product rather than money?
Black Market
Due to the prolonged economic crisis in Venezuela, the country lacks several commodities, ranging from drugs to food to hygiene items.
In this context, good quality tires have a high value on the black market.
With the continued devaluation of the Venezuelan currency against the dollar, it may be more advantageous to receive this product than money.
Goodyear employees were summoned to the company's factory, located about 150 km from Caracas, capital of Venezuela, to receive a notification of the closure of the activities.
The same day, they were informed that they would receive the 10 tires as part of the compensation. By Thursday (6), Goodyear manufactured between one thousand and two thousand units per day, which represents 10% of its capacity.
Exodus
The Goodyear case is the latest in a series of multinational corporations that have left Venezuela. They have already left the country for Kellogg (food), Kimberley Clark (personal hygiene) and several airlines.
Venezuela's economic problems began in 2013 with the drop in the price of oil on the international market, but the worsening of the crisis from 2014 is due in large part to the mismanagement of the Nicolás government Maduro.
With declining revenues generated by lower oil prices, the government began offsetting the deficit by printing money, which has generated current hyperinflation, according to BBC News correspondent in Venezuela , Guillermo D. Olmo.
With the erosion of the purchasing power of the population, the government forced companies to increase employee wages. The situation worsened with the economic sanctions imposed on Venezuela by the United States, which made it difficult to import products necessary for the country's industrial exploitation.
The profit margin of the enterprises has been reduced to the point that for many, the maintenance of operations in Venezuela makes no sense. An estimated 2.3 million people have left the country since 2014. Power outages and episodes of food scarcity and solutions are common.
The Donald Trump administration also intensified the sanctions against dozens of Venezuelan authorities and businessmen, including at the highest level of government.
Washington accuses these people of corruption, drug trafficking and human rights abuses, which they deny.
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