Kellogg's cereals in Venezuela during the COVID-19 pandemic. Photo: X/@FedeCavero/File photo.
The British company Kellogg Latin America Holding Company Limited has launched a fresh legal offensive against Venezuela by filing an investment arbitration claim with the International Center for Settlement of Investment Disputes (ICSID) based in Washington DC.
As reported by the Ibero-American Arbitration Center’s magazine, the claim was filed on November 9, 2023, and the multinational corporation is invoking the Venezuela – United Kingdom of Great Britain and Northern Ireland Bilateral Investment Treaty of 1995.
In 2018, the company unilaterally ceased operations, abruptly leaving over 500 workers jobless. This action was communicated to the workers only through a last-minute statement, which according to Venezuela’s judiciary, was a gross violation of local labor laws.
Following Kellogg’s illegal departure, the factory workers, aided by the Chavista government under President Nicolas Maduro, assumed control of the company’s operations. Five years later, in retaliation, Kellogg’s has levied the accusation of “copyright misuse” against Venezuela.
Kellogg’s, after more than 50 years of operation, abruptly opted to exit Venezuela in 2018, a mere five days before the presidential elections. Subsequently, the Venezuelan government, as documented in Official Gazette No. 41404, promptly seized control of the company and established a special administrative board to oversee the transition of ownership. The company is now controlled and run by the workers themselves and regulated by the special administrative board.
(Últimas Noticias) with Orinoco Tribune content
Translation: Orinoco Tribune
OT/JRE/DZ
