Argentine oilseed union threatens strike in key soy processing plants

Argentina’s main oilseed union SOEA is threatening a national strike in soybean processing plants over a salary dispute at exports conglomerate Vicentin, a union leader said on Wednesday, February 27.

SOEA secretary Martin Morales told Reuters that Vicentin must pay February wages and that the potential work stoppage would also involve other unions.

The company, based in Santa Fe province, was once the country’s largest marketer of processed soybeans, which for years have been Argentina’s most valuable export.

Morales added that after a Santa Fe court ruling from last week that found an agreement between Vicentin and its lenders unconstitutional, no new deals have been signed for the rental of its facilities past February.

A source close to Vicentin told Reuters that the company warned oilseed workers about a risk of defaulting on payments following the ruling, stating that the processor was working to extend the rental of facilities and reverse the situation.

“The company was left in a very delicate situation and the responsibility, among others, lies with the Supreme Court of Santa Fe that made a ridiculous ruling,” the source added.

According to a SOEA statement on Tuesday, after union leaders met with Vicentin executives, the company said it might not be able to pay worker salaries.

While Vicentin has paused its own operations, other firms pay to rent out its facilities. In the past, Vicentin has disclosed that its three plants had a combined daily crushing capacity of 21,000 metric tons along with a storage capacity of more than 1.2 million tons, including source materials and byproducts, according to the company’s website data.

Since 2020, it has been mired in bankruptcy proceedings after announcing a year earlier a stop to payments worth more than $1 billion.

Reporting by Maximilian Heath; Editing by Chris Reese, David Alire Garcia and Sandra Maler

Source: Reuters

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