Alert at FAdeA: employees received 60% of their salary and shut down the factory

Workers at the Fábrica Argentina de Aviones (FAdeA) have walked off the job after receiving only 60 percent of their June salaries, exacerbating a long-standing financial and operational crisis at the aerospace manufacturer. The company, based in Córdoba, has been grappling with mounting debt, stalled contracts, and reduced production capacity for months. Over 650 employees received partial payments, leaving them unable to cover basic expenses, while the remaining 40 percent of wages remain unpaid with no official date set for payment. The situation has forced some workers to take unpaid leave this week, compounding their financial strain. The crisis at FAdeA has deepened over time, marked by delayed salary payments, unresolved supplier debts, and uncertainty about the company’s future. According to union representatives, the lack of clarity regarding when the Ministry of Economy will disburse funds has left workers in limbo. The Sindicato de Trabajadores Aeronáuticos (STA) highlighted these concerns in a letter sent to the national CGT union, emphasizing the desperation among employees who can no longer afford transportation costs to reach the plant in Córdoba. The financial troubles reflect broader issues within FAdeA's operations. Industry sources indicate that the factory is functioning at just 30 percent of its industrial capacity. Most current activity centers around supplying components for the Brazilian company Embraer, while key strategic contracts remain pending. One such contract involves the modernization of Argentine Air Force aircraft under the IA-63 Pampa program, valued at approximately $110 million. This agreement has been in limbo for nearly two years, hindering efforts to stabilize the company. Another major project, a potential cooperation deal with Mexico’s Federación Mexicana de la Industria Aeroespacial (FEMIA) for manufacturing advanced trainer aircraft, could bring up to $600 million in business. However, ongoing operational and financial challenges have kept the initiative on hold. These delays not only affect FAdeA but also ripple through the supply chain, impacting local suppliers who face mounting debts. Financial difficulties have strained relationships across the industrial supply chain. The Cámara Industrial Metalúrgica de Córdoba previously warned that FAdeA owes nearly $20 million to suppliers, some of whom have gone unpaid for almost two years. The limited production capacity makes it difficult for the company to generate enough revenue to meet payroll obligations, operational costs, and commercial commitments simultaneously. Recent changes in leadership have added another layer of complexity. In the past few weeks, the national government appointed Oscar López as FAdeA’s new president, replacing Julio Manco amid internal conflicts and without clear progress on securing new contracts. The company has lost between 200 and 250 workers over the past three years due to resignations and dismissals, while a restructuring process initiated in 2025 continues. Union sources suggest that the lack of direction for FAdeA stems partly from disputes between national agencies overseeing the company. The STA attributed delays in funding transfers to political tensions between the Ministry of Defense and the Agency for Public Enterprise Transformation. These inter-agency disagreements appear to have further complicated the already challenging situation at FAdeA. The recent walkout underscores the growing discontent among workers, who feel abandoned by both management and the government. With no immediate resolution in sight, the future of FAdeA remains uncertain, and the impact on the local economy and workforce continues to unfold.