The transport of Argentina is facing bankruptcy

The National Federation of the Road Transport Carriers of Argentina (FATAP) issued a press release, warning of the threat of massive bankruptcy. The reason for this may be “the serious financial and economic situation which the automobile transport of the country is faced with” and a “sharp decline in income” of the automobile passenger transportation market.

The main addressee of the message is the Union of Motor Vehicles (UTA), since the situation is primarily related to the impossibility of paying salaries to the employees for March and the following months, as the quarantine is introduced in the country. The federation emphasized that there was a sharp decrease in the number of passengers carried. This affected the entire industry, which is why the owners of motor transport enterprises cannot fulfill their social obligations, including those related to the special surcharges, established by the Argentinean legislation in the event of an emergency.

A FATAP statement says that the transport companies could be completely paralyzed by the inability to pay the employees who deserve it more than ever.

The workers of the industry of transport risk their health and may be exposed to COVID-19 infection. The Federation reports that a solution to its problem has not been found in any of the state authorities and requires the Government of the republic and the UTA to declare an emergency.

The announcement of the emergency regime would allow the enterprises, belonging to the federation, to receive the corresponding benefits and financial support, provided for such cases by the legislation of Argentina. In particular, the authors of the appeal refer to special decree No. 3232/2020, signed on April 1, 2020, and expanding the list of support measures for the enterprises and production facilities that are most affected by the COVID-19 pandemic.

According to FATAP, more than 33 thousand employees currently work at the motor transport enterprises.

Ignoring the problem can lead to the massive bankruptcy of companies and to the dismissal of a significant number of employees living in various parts of the country.

FATAP also called for the urgent intervention in the situation of the President Alberto Fernandez. He previously stated that the Government is monitoring the situation, and the companies will certainly receive the support.

It is known that on the same day, the Government paid about 50 million pesos to transport companies as subsidies that transport companies usually receive for the transportation of disabled passengers despite the fact that many people did not travel for almost a month. However, the experts say that the temporary measures will not be able to change the situation as a whole.