Textile industry crisis in Argentina leads to layoffs and bankruptcy

The Argentine textile sector is facing significant labor instability, marked by wage cuts and company bankruptcies. In Río Grande, Tierra del Fuego, the major firm Australtex implemented a sudden reduction in the 'zona fría' (cold zone) allowance, affecting 70% of its workers. The Asociación Obrera Textil (AOT) reported that this move impacts approximately 130 employees and noted that the company failed to justify the reduction during Ministry of Labor hearings.

In northern Santa Fe, a court has declared the bankruptcy of Algodonera Avellaneda. According to Juan Carlos Bandeo, secretary general of the Asociación Obrera Textil of Reconquista, the company's collapse was triggered by acting as a guarantor for massive loans taken by Grupo Vicentin from Banco Nación. The bankruptcy follows a debt claim of approximately $260 million, resulting in the immediate loss of jobs for 100 workers.