In Argentina, Bridgestone is preparing to share its profits with its employees

Bridgestone Argentina has announced that it will pay an exceptional bonus of 730,000 pesos to each of its employees for their participation in the company's profits (photo illustration).

AFP - PHILIP FONG

Text by: RFI Follow

1 min

As global dividends hit record highs in 2021 and are set to continue rising this year, the Argentinian subsidiary of tire company Bridgestone is set to share its profits with its employees.

A company agreement negotiated during the economic crisis of 2001 entitles them to profit-sharing.

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With our correspondent in Buenos Aires,

Bridgestone Argentina has announced that it will pay an exceptional bonus of 730,000 pesos, approximately 6,000 euros at the official exchange rate, to each of its employees in respect of their participation in the profits of the company.

In all, more than 1,300 employees will receive a first payment of 365,000 pesos in February, then the same amount in May, when the company will present its final results for 2021. 730,000 pesos in all, therefore, six times the average monthly salary at Bridgestone Argentina.

A company agreement provides that employees are entitled to one third of gross profits above 6% of turnover.

Definitively incorporated into the firm's collective agreement in 2006, this unique clause in Argentina had been negotiated at the time of the 2001 crisis.

As Argentina's economy collapsed and the tire maker made pay cuts and layoffs, the Sutna union argued in essence that if workers had to pay the price of the crisis, it was normal that they are also entitled to a share of the profits.

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