Daily Archives: March 18, 2014

Bolivia facing anarchy: workers’ unions want to take over private companies!

El Diario reports:

Private sector warns against manufacturing workers attempt to take over companies

The Federation of Private Enterprises of La Paz took position against claims of factory leaders who intended to create social investment companies out of legal investments established in Bolivia.

2014-03-15 10.16.03 amThe private enterprise of La Paz expressed uncertainty about the recent statements of factory leaders [unions], who intend to take the companies to be “social” entities, which has been interpreted by managers of trade associations as an attempt to generate “uncertainty” on the legal investments made in various fields of economic activity in the country.

The president of the Federation of Private Employers of La Paz (Feplp) Urquizo Luis Valdivia, expressed this Friday [3/14/14] his concern of the threat from factory workers about turning 12 factories from the private sector to “social enterprises” under the pretext that they were bankrupt or in financial trouble.

Additionally, the Feplp questioned the permanent salary increases and double Christmas bonuses instructed by the Government, which affects the [financial] capacity of the businesses.

He said the statement of the executive of the Confederation of Factory Workers of Bolivia [labor union] is causing uncertainty in the private sector and legal uncertainty for private investment, because the arguments could serve as a precedent to take over other companies who are legally established in the country.

Urquizo said the with the workers’  threat, job creation and job stability are running serious risks, the outlook could encourage boycotts of companies that may be facing a difficult temporary financial situation, as a result of salary increases or the decree that ordered the payment of a double bonus.


According to press statements of the executive of the Federation of Factory Workers of Bolivia, Victor Quispe, the workers would have identified a dozen companies, subject to become social enterprises, because they would be confronting financial problems and threatening about 600 jobs, if they were declared bankrupt.

These same reports indicate that the factory workers would have identified five factories of La Paz, three in Cochabamba and four in Santa Cruz that would be facing difficulties, but the President of the Employers of La Paz revealed that the workers gave no further details to corroborate such information.


Supreme Decree 1754 issued in October 2013 allows workers to form and establish business enterprises in any of the corporate arrangements provided for in the Commercial Code and can be applied only in cases of bankruptcy, liquidation or the business has closed.

The President of the Federation of Employers of La Paz said that both the Ministry of Production and the Ministry of Labor should be careful when analyzing the approach of the workers, because it would make it viable attacking the legal security for investments and job creation, setting a disastrous precedent for the immediate future of the enterprises.

He recommended instead to develop measures to strengthen companies and not punish them with measures that affect its liquidity, such as permanent salary increases and bonuses twice.


The so-called socialists should pay attention how the Chinese government supports the private sector… generating more labor wage inequalities and more environmental pollution. Workers should be happy to have a job and let the entrepreneurs do what they know best: produce, hire and pay taxes!