Posted on August, 8, 2024 at 10:08 am
A labour strike launched by Argentine oilseed industry unions now in its second day has halted grains shipments from ports that host soy processing plants, Reuters reported, citing the ports chamber on Wednesday, as workers demand that wages stay ahead of high inflation.
Argentina is a major exporter of processed soy oil, widely used across industries for products ranging from foods to biodiesel.
The strike kicked off early on Tuesday by two industry unions, including the SOEA oilseed factory worker union, after they could not reach a deal.
SOEA's leader Daniel Succi told Reuters that the unions are seeking wage upgrades above the country's inflation rate, noting there have been disagreements with companies on when salary hikes can take place.
While the rate of rising consumer prices has slowed since President Javier Milei took office in December, accumulated inflation in the first half of this year nevertheless stood at 79%, according to official data.
Late Tuesday, the oilseed worker strike was extended for another 24 hours.
Succi warned that absent an invitation from companies to negotiate, the unions would evaluate further extending the work stoppage.
In response, industry leaders like Gustavo Idigoras, president of the CIARA oilseed industry chamber, described the strike as unreasonable. The chamber is one of the parties negotiating with the unions.
Idigoras pointed to a 77% wage increase to date, plus a proposal he backs for another 12% hike in September.
Guillermo Wade, the head of the Ports and Maritime Activities Chamber (CAPyM),explained that ports that are not affiliated with the oilseed federation union are operating normally, but the rest have shut down.
Only two ports among the country's main farm shipping hubs, all located north of the city of Rosario on the Parana River, do not host soybean crushing plants. One belongs to global commodities giant Archer Daniels Midland and the other to local firm ACA.
More than 80% of Argentina's grains derivative exports are shipped from ports located north of Rosario, including those operated by major grains traders Cargill and Bunge.
Source: The Poultry Site