The government led to the collapse of more than 1,000 companies expropriated in 12 years
"We called them recovered companies, but they ended up being the biggest failure and defeat," said Marcela Maspero, president of the union. He reported that Maduro increased corruption and harassment
By CARLOS SEIJAS MENESES |
CSEIJAS@EL-NACIONAL.COMAUGUST 13, 2018 07:00 AM | UPDATED ON AUGUST 13, 2018 07:06 AM
The collapse of the ship Tallink 5 of Conferry, a shipping company that was nationalized by the late President Hugo Chávez in 2011, illustrates the state to which the government administration led the 1,359 companies that it expropriated between 2005 and 2017, a figure calculated by the Observatory of Property Rights of Cedice.
Even the Executive recently admitted that it had failed in the administration of the state companies, of which many passed into the hands of the State through the means of expropriation, confiscation and nationalization. "The productive models that we have tried so far have failed, and the responsibility is ours, mine and yours," said President Nicolás Maduro on July 30 at the PSUV congress.
Ana Carrasquero, researcher of the Observatory, affirmed that the fall of the production is not due to the fact that the government does not know how to administer, but that it is part of "a policy of systematic attack" against the right of property, which was established in the First Socialist Plan of the Nation 2007-2013.
The expert said that both state and re-nationalized companies have demonstrated that they are a loss of monetary resources and that they lack the capacity to generate, effectively, products for the domestic market. "After the number of sugar mills that were expropriated, why is sugar not easily available now? The same happens with the number of coffee companies, "he said.
In the end, the State contributed to the fall of domestic production and generated a process of scarcity of goods of all kinds, something that had never been seen in the history of Venezuela, added the researcher.
The NGO Transparencia Venezuela noted in the report State-Owned Enterprises in Venezuela that the dramatic situation in the country, considered a humanitarian crisis since 2016, is partly the responsibility of "the poor management" of public companies in the manufacturing, agro-industrial and commercial sectors . "The State has important manufacturing companies of the basic items that are scarce in the country and instead of increasing the production of them, it has decreased."
More intervention, less production . Cedice indicates in the report Cost and impact of the expropriations: causes of a patrimonial state that was in 2005 when they began to register the interventions to the private property; the starting point was El Charcote, which belonged to the British Vestey group and to which the government bought the herd for 4.1 million dollars in 2006, after a long period of negotiations.
After expropriating companies in sectors such as oil, electricity, telephone and food, in 2008 the government agreed to pay 270 million dollars for 89% of the local unit of France's Lafarge and 552 million for 85% of Holcim Switzerland with French cement companies Lafarge and the Swiss Holcim, while expropriated the subsidiary of the Mexican Cemex, so it became the owner of the cement monopoly.
After the nationalization of the cement industry, production fell and currently the paralysis in all plants is 80%, said Abner Mendoza, of Venezolana de Cementos. He pointed out that the country has an installed capacity of 10 million metric tons, but now what they produce does not even reach 3 million.
In that year the government also set its sights on Lácteos Los Andes, founded in 1984 and acquired by Pdvsa in 2008. Although its production grew 33% between 2007 and 2012, according to Transparencia Venezuela, in the last 6 years it has fallen due to lack of material premium and deficiency in the maintenance of equipment and plants.
A trade unionist of Dairy Los Andes, who asked not to name his name, said that production is completely paralyzed since 2017 due to lack of raw materials. "We have met with several ministries, but they ignore the problem," he said.
Transparencia Venezuela indicated that the production of milk, sugar and cement fell below the levels prior to the nationalization of the respective companies and that Venezuela, from being an exporter of coffee, became an importer. Fama de América, producer of this item, was expropriated in 2009. In 2016, they worked at 10% of their capacity due to lack of raw material and now the product is seldom available in the market.
In 2010 the tsunami of expropriations also devastated the supermarket chains Cada and Éxito, which were replaced by the Bicentennial Supply Network.
Jorge Lastra, director of the Rabsa union, said that when those supermarkets were private the shelves were always full and offered several brands. But later, when it passed into the hands of the State, products began to run short.
"Abastos Bicentenario has rotted," Maduro said in February 2016 and ordered a restructuring of the network. After the measure, more than 10,000 workers were dismissed. The liquidations to the employees have continued in the branches that close to become CLAP Stores, now in private hands.
Eight years ago, the government also nationalized Sidetur. When it was private, it produced more than 40% of the bars in the national market. Alejandro Álvarez, general secretary of Sidernac, affirmed that currently the Casima Plant has been paralyzed for more than a year.
From the promise to failure . "We called them recovered companies, but they ended up being the biggest failure and defeat," said Marcela Maspero, president of the National Union of Workers of Venezuela.
He pointed out that at first the workers supported the expropriations that Chávez made with the hope and intention of maintaining productivity, improving the distribution of products and services and working conditions and guaranteeing and increasing the distribution of wealth, to the benefit of workers to improve their rights. This happened with companies such as Venepal, Cantv and the electrical system.
But none of the promises were fulfilled, he said. "The people who were at the forefront of what they did was to try to put an end to the trade union organizations, divide, disperse, persecute, harass, imprison and even assassinate trade union leaders who even fought for production," he said.
Later, under the presidency of Maduro, the government took out another letter that it had up its sleeve: the Bolivarian National Armed Forces. "Now we have the militarism present in the companies, which is much more serious because, in addition to implanting the military regime, corruption, harassment and persecution have increased," Maspero said.
He added that all state-owned companies are a failure due to lack of maintenance, corruption, lack of labor rights, union persecution and absolute lack of production.
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They denounce Invecem's technical paralysis
The deputy to the National Assembly, Carolina de Miranda, affirmed that workers of the Industria Venezolana de Cemento plant, a subsidiary of the Cemento Socialista Corporation, located in the town of San Sebastián de los Reyes, in the state of Aragua, protested against the paralysis technique of the state company for lack of raw material.
He said that the president of the workers' union of Invecem, Luis Carrillo, informed him that they decided to activate the labor dispute and, among them, to make peaceful protests at the doors of the plant during the morning hours until the company was reactivated.
De Miranda said that, in addition to the wage issue and demand economic demands, the nearly 300 workers are concerned about the paralysis of the 3 production lines, including the one that was inaugurated in March 2016 with an investment of 126 million dollars. of the China-Venezuela agreement. "There are workers with up to 30 years of service who are worried about their job stability," he said.
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Failure in the hands of the State
Dairy Los Andes
Founded in 1984, it was acquired by Pdvsa in March 2008. Although its production grew 33% between 2007 and 2012, according to Transparencia Venezuela, in the last 6 years it has fallen due to lack of raw materials. It is paralyzed from 2017.
National Cement Industry
Since the government took control of companies such as Lafarge, Holcim and Cemex in 2008, production fell. Not even 30% of the installed capacity is produced, which is equivalent to 10 million metric tons.
Fame of America
The coffee producing company was expropriated in 2009. In 2016, it operated at 10% of its capacity due to the lack of raw material and since then production has remained in a tailspin. Workers have protested for fear of losing their jobs.
Agroisleña
In 2010 it was expropriated by the late President Hugo Chávez, who renamed it Agropatria. Since then, producers have denounced the increasingly meager supply of inputs for agricultural production.
Hypermarkets Success
In 2010, Chávez expropriated the Franco-Colombian supermarket chain, whose premises became part of the Bicentennial Supply. The official network was privatized by Nicolás Maduro. Now it's called CLAP Stores.
Sidetur
In 2010 the government nationalized Sidetur. Alejandro Álvarez, general secretary of the Syndicate of the Casima National Steel Complex, has reported that the plant has been paralyzed for more than a year now
