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Mitsubishi Closes Venezuela Plant

Japanese manufacturer Mitsubishi decided to close a plant belonging to its MMC Automotriz subsidiary, due to worker discipline and a drop in productivity, the company announced in a release, quoted by just-auto.com.

The worker discipline Mitsubishi refers to includes "high level of absenteeism, disobedience, aggression and lawlessness of some of the workers." Even if it is unclear whether production decreased because of the workers or the global recession, Mitsubishi is now faced with 33 cars/day output from 1,412 workers. In 2004, 590 workers managed to assemble 59 cars/day.

The closure of the plant will not affect only the indisciplined workers, but all the 2,000 employees. Mitsubishi says it is willing to negotiate the reopening of the plant with the labor ministry, provided "the safety of its workers and employees in a climate of peace and discipline" can be ensured.

The plant in question was the scene of a two month-long occupation by the workers at the beginning of the year. With the help of local authorities, the conflict ended in March, only to surface again these days.

Abelardo Daza, an economics professor at the Caracas-based IESA told Dow Jones the most likely reason behind the worker's behavior is the feel that the government can step in and save the day. In Venezuala, president Hugo Chavez is trying to promote locally-made products at the expense of imports.

According to Daza, workers feel if they cause trouble for the management, the government will step in and take over.

"I think what we're seeing is a real deterioration in the relationship between the unions and the companies," Daza told Dow Jones.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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