The government of Venezuela has taken over a factory run by U.S. multinational, Kimberly-Clark, with the country’s Minister of Labour, Oswaldo Vera, announcing that the factory is “now in the hands of the workers.”
In a televised address on Monday, Vera said he was signing an order for the factory to be occupied after Kimberly-Clark laid off more than 900 workers.
Wall Street Journal quoted him as saying:
“Kimberly Clark will continue producing for all Venezuelans and is now in the hands of the workers”
The diaper and tissue producer’s factory in the northern city of Maracay had ceased production due to a shortage of raw materials.
The fall in global oil prices has crippled Venezuela’s ability to import goods, leading to shortages of food, hygiene products and raw materials for industry.
Kimberly-Clark has not confirmed the takeover, but in a statement to the BBC, it said:
“If the Venezuelan government takes control of Kimberly-Clark facilities and operations, it will be responsible for the well-being of the workers and the physical asset, equipment and machinery in the facilities going forward.”