In Argentina Crisis, Firms Do Everything to Cut Costs; Except Fire Workers

Port workers demonstrate outside the customs building in Buenos Aires, Argentina, Wednesday, Feb. 12, 2014. The protesters say the government is not paying retired port workers their state pension plan, affecting over 1,000 of their union members. AP Photo/Victor R. Caivano

BUENOS AIRES—Like many Argentine businessmen, Marco Meloni is doing everything he can to avoid laying off staff at his textile factory despite a slump in sales, more than 70 percent interest rates and soaring utility bills.

The reason? He doesn’t have the money to fire anyone.