Foundation
The Federation of Former Employees of YPF Argentina was founded on 11 March, 1998 in the city of Caleta Olivia, in the province of Santa Cruz, Argentina. It remains headquartered there.
The Federation was formally authorized by the Inspeccion General de Justicia to operate as an association under Argentine laws. It is managed by a 12 member Steering Committee composed of representatives of the groups that make up the Federation. The Steering Committee is currently chaired by Mr. Ricardo Esquivel.
The Federation's 34 affiliate groups are broadly dispersed across Argentina (see the list on the left of this page). The Federation, and its affiliates, all operate as non-profit organizations. It represents 25,000 former employees of YPF S.A.
Purpose
The Argentine State privatized a number of industries in the 1990s. The mechanisms required to do this were complex, but the aspect relevant here is that employees working at State firms at the time of a privatization were to be granted shares (through a "Joint Ownership Plan") of the new private company during the process of privatization.
Privatization was highly controversial, and one of the mechanisms for accomplishing it was by assuring the public that workers in the State owned companies would not be badly damaged. The legislature passed laws to this end, the principle one in 1989, assuring workers that they would share in the dividends of the newly private companies, and have proportional representation on the Boards.
At the time of the transition from a State company to a private one, there were approximately 30,000 workers who should have been entitled to shares. The Federation is alleging that the State managed to reduce the number of Beneficiaries of the JOP from 30,000 to 5,000 using illegal resolutions; and further, that it colluded with YPF S.A. to take the shares that had been allocated to the 25,000 disenfranchised employees, and sell them on the New York Stock Exchange. This offering took place in mid 1997, and raised approximately US $988MM.
The Federation was formed to fight for the rights of the workers that have been badly damaged by the corrupt and illegal activities of various parties. Most employees have received nothing. But the law is on their side - both Argentine law, and the US laws and regulations governing reporting and transparency in the US equities markets.
After over a decade of work, the Federation is now determined to make the final push, to achieve the justice deserved by its members. New legal representation in the US and additional representation in Argentina, along with new strategies, and infusion of resources, and recent critical investigations and decisions made in the Argentine court system have brought new life to an old struggle.
We have already prevailed in the case of 628 former employees - who worked on oil tankers - that were finally awarded the US $10,000 each they were owed from the sale of the tankers (see the "Achievements" page for more details), and we will prevail in the larger matter of the 25,000
no matter what it takes.
