Venezuelan workers to be paid severance in ‘tires’

CARACAS – Reuters

Goodyear is halting operations in Venezuela because of dire economic conditions and U.S. sanctions, the company said on Dec. 10, part of an exodus of foreign corporations from the country.

Demand for consumer goods has plummeted and firms are unable to import raw materials, leading companies ranging from Kimberly-Clark to Kellogg to leave for good.

“Goodyear-Venezuela has made the difficult decision to stop producing tires,” the firm said in a statement, Reuters reported.

“Our goal had been to maintain its operations, but economic conditions and U.S. sanctions have made this impossible.”

Goodyear is making legally mandated severance payments and is giving each worker 10 tires, which are of enormous value amid chronic shortages, the company said in a letter written to workers.

Venezuela has been in a dire economic conditions since 2014.

Venezuela’s consumer prices rose 1.3 million percent in the year ending in November, the National Assembly said on Dec. 10