Strike Disrupts Argentine Agribusiness as Vegetable Oil Workers Demand Pay Increase

The ongoing strike by workers in Argentina’s vegetable oil sector is beginning to take a toll on the nation’s agribusiness, a critical industry for generating foreign currency. As of August 08, only 396 trucks entered the port terminals of Greater Rosario, an 85% drop compared to last week’s average of 2,600 vehicles.

The strike, led by the San Lorenzo Vegetable Oil Workers Union (SOEA) and the sector’s Federation of Workers, has stretched into its third day, with neither side showing signs of backing down. The unions are demanding a 25% wage increase, a proposal that companies have thus far rejected. The central issue of the conflict is income tax; workers argue that reductions in their take-home pay due to this tax necessitate compensation from their employers.

Gustavo Idígoras, president of the Chamber of the Vegetable Oil Industry of the Argentine Republic (Ciara), emphasized that the dispute primarily concerns the government’s income tax, not the companies. Ciara confirmed that workers will face deductions for the days they do not work and will lose their attendance bonuses. Meanwhile, the unions have accused agro-exporters of using the strike to push for a currency devaluation.

“It is incomprehensible that they reject an increase higher than expected inflation and cut off all dialogue. Thousands of transporters have lost workdays, and the country has lost credibility as a food supplier due to these senseless measures. The industry’s proposal anticipates inflation and puts workers’ wages in the sector above most economic activities in the country. The continuation of the strike is in the hands of the unions. The industry has already done everything it could,” Ciara stated.

Conversely, the SOEA and the Federation of Workers of the Oilseed Industrial Complex, Dismantlers, and Related Industries (FTCIODYARA) claim that the companies show “a lack of willingness to negotiate.” In a meeting with more than 250 delegates nationwide, the decision was made to extend the strike for another 24 hours, beginning with the first shift this Thursday, August 08.

Response from the Unions

“We are at every gate of all the companies, the phones are available, and our union headquarters are just a few blocks away. We see no impediments to resuming dialogue. There is a lack of willingness to reach an agreement,” said Martín Morales, union secretary of SOEA.

The companies maintain that “the industry has already made a great effort by paying a 77% increase while inflation reached 79%, and has offered an additional 12% increase in September, bringing the total wage adjustment to 94% by September, clearly outpacing inflation.”

Agro-exporters argue that “there are no objective reasons for the wage proposal not to be accepted, allowing us to resume work and prevent further harm to the industry.”

Source: La Nación

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