FADEA faces severe salary payment crisis

The Argentine state-owned aircraft factory, FADEA, is experiencing one of its most difficult periods in recent years, with its 650 employees partially unpaid for June salaries. The company has been granted leave from work as it awaits crucial fund transfers from the Ministry of Economy, which are dependent on the Ministry of Defense. Union protests have erupted amidst the financial uncertainty.

FADEA initiated a 90-day Preventive Crisis Procedure last May, involving suspensions and partial salary payments. New leadership, with Óscar López appointed president at the beginning of July, aims to strengthen institutional transformation, operational order, and strategic consolidation. The stated goals include restoring predictability, reducing operational imbalances, and bolstering industrial capabilities essential for national defense and Argentine aeronautical development.

Currently, FADEA relies on extraordinary disbursements from the National Treasury to cover salaries. This month, the Ministry of Economy released only 60% of the necessary funds, with no clear timeline for the remainder. The Ministry of Defense also lacks concrete information on when the remaining funds will arrive, though there is hope for a resolution this week.

The situation has reignited discussions about FADEA's future. Founded in 1927 as Fábrica Militar de Aviones, the factory was a key driver of national industrialization in the mid-20th century, producing not only aircraft like the Pulqui I but also tractors, cars, and motorcycles. At its peak in 1952, it employed around 11,000 people. Despite its historical significance and the insistence of specialists on its industrial capabilities and trained workforce, the company's activity is currently minimal.