Friday, August 12, 2011

Business reorganization

This June 24 edition of the Gaceta Oficial has, among other things, a series of resolutions from the ministry of food industries that dissolve, combine, and reorganize enterprises under that ministry’s authority.

I’m sure a reader will plow through it and tell us what it means.

Meantime, from a quick scan it looks like a substantial reorganization, such as a few cases where enterprises in different provinces are dissolved and turned into divisions of a new national enterprise. My guess is that it opens the door for management reductions. But just how much reduction is taking place, or payroll or anything else, is not clear. There are quite a few sentences like “Extinguir la Union de la Carne” ("Union" refers to a group of businesses) and quite a few directives to redistribute vehicles and real estate belonging to dissolved enterprises.

Ominously, Resolution 295/11 looks like a blow to beer production, but we’ll have to wait until someone reads it all carefully.

No comments: