Source: Oleoscope (Russia)
As reported by Reuters, a union in Argentina has started a strike over wage disputes that has temporarily paralyzed operations at all soybean oil plants. The impact of the strike threatens to delay shipments and reduce exports from the world’s largest exporter of soybean meal and oil.
The strike is said to have been initiated by workers who are members of the SOEA and Oilseed Workers Federation unions.
“A joint strike has started in all soybean oil factories in the country … over the lack of agreement in collective bargaining on wages,” members of the SOEA and Federation of Oilseed Workers unions said in a statement.
According to the shipping agency Nabsa, the strike also affected a number of ports, including those of Argentina’s largest processors such as Viterra Inc, Cargill Inc and Louis Dreyfus Co.
Although Argentina’s chronic inflation rate of over 270% is slowing, consumer prices still rose by 80% in the first half of this year alone, according to official figures.
Argentina is one of the world’s largest export centers for processed soybeans and the world’s largest supplier of oilseed derivatives, which are used in a variety of industries for products ranging from food to biodiesel.
Gustavo Idigoras, president of the Ciara Processors Association, which is negotiating with the workers, said the delayed shipments are costing Argentina about 50 million dollars a day and also affecting the country’s reputation as a reliable global supplier.
With negotiations at an impasse, there is no immediate end in sight to the strike.
SOEA represents workers in San Lorenzo, a port district on the Paraná River, which accounts for around 70 percent of Argentina’s soybean supplies. The Federation of Oilseed Industries unites workers in other companies on the Paraná and on the Atlantic coast.