SOEA threatens a national strike in soybean processing amid salary disputes with Vicentin. Vicentin has halted operations and struggles with bankruptcy, unable to pay February wages. A court ruling complicates rental agreements for its processing facilities. The strike may involve multiple unions affecting Argentina’s critical soy industry.
Argentina’s key oilseed union, SOEA, has indicated plans for a national strike affecting soybean processing facilities, primarily linked to salary disputes with exporting company Vicentin. Union secretary Martin Morales emphasized the necessity for Vicentin to fulfill wage obligations from February and mentioned that multiple unions might engage in the work stoppage.
Vicentin, situated in Santa Fe province, was historically the largest processor of soybeans in Argentina, a crucial export commodity. Although the company has halted its operations, it continues to receive rental income from its facilities leased to other businesses. Previously, Vicentin’s plants boasted a collective crushing capacity of 21,000 metric tons daily and had a storage capability exceeding 1.2 million tons.
Since entering bankruptcy proceedings in 2020, following a suspension of over $1 billion in payments, Vicentin has been facing financial difficulties. On Tuesday, SOEA issued a statement indicating that discussions between union leaders and Vicentin executives revealed the company may struggle to meet salary payments. Morales reported that a recent court ruling deemed an agreement between Vicentin and its creditors unconstitutional, leaving no new rental agreements for its facilities beyond February.
The Argentine oilseed union SOEA is poised to initiate a nationwide strike in soybean processing plants due to unresolved salary issues with Vicentin. The company’s ongoing financial struggles, including its bankruptcy journey, undermine its ability to pay employees, prompting union actions. The potential strike reflects broader labor disputes in the agricultural sector, particularly concerning essential export commodities like soybeans.
Original Source: www.usnews.com
