The oil unions agreed on a salary improvement and will lift the strike in the exporting ports after 20 days of conflict

There was a salary agreement between the oil unions and the private sector
There was a salary agreement between the oil unions and the private sector

After almost 11 hours of meeting in the Ministry of Labor of the Nation and 20 days of force measures in the exporting ports of the country, tonight the Oil Federation and the Puerto San Lorenzo activity union (SOEA) agreed with the Chamber of the Oil Industry (CIARA) a new salary guideline that will allow the conflict to be resolved.

As reported from the oil industry, the agreement consists of a 35% salary increase in 2020, an annual Bonus equal to the 2020 salary that includes the 35% increase over 2019, an exceptional pandemic Bonus of $ 90,000 in 9 installments for those who worked during the Social, Preventive and Compulsory Isolation (ASPO), a salary adjustment for 2021 of 25% in two sections and a salary review in August with application of the consumer price index to end 2021.

In a statement, the entity chaired by Gustavo Idígoras said: “We ask that the economic effort lead to joint work without conflicts that lead to a significant decrease in competitiveness with penalties for non-compliance and loss of markets, as well as exports with a lower national aggregate. Each point of participation ceded to competing exporting countries means a negative impact on the entire Argentine economy, with greater restrictions for the most needy sectors in a context of recession ”.

Today’s meeting in the labor portfolio, which was the second that took place in the midst of the conflict, had many moments of tension where each of the parties defended their positions. “Social peace was privileged as a business objective, due to the economic consequences for the industry, the community, the workers themselves and the Nation, in addition to the fact that Argentina became an unreliable supplier at the international level. Additionally, the methodology applied for taking plants in some port areas was an illegal and dangerous action ”, they stated from CIARA.

Impact

The impact of the force measure after so many days of duration caused various problems. Today, There are 173 ships waiting to load about 4.7 million tons of soybean grains, oil and flour, for more than 2,000 million dollars.

In addition, in the port of Bahía Blanca, a report from the Cereal Exchange of the aforementioned city indicated that between December 9 and 24, the cargo of ships fell by 75% compared to those made in the same period of the year above, when only 125,401 tons were shipped.

Gustavo Idígoras, president of the Argentine Chamber of the Oil Industry
Gustavo Idígoras, president of the Argentine Chamber of the Oil Industry

The protest affected operations in the oil factories and port terminals located in Quequén, Bahía Blanca, San Lorenzo, Puerto General San Martín, Arroyo Seco, Rosario, General Lagos, Villa Constitución, Zarate, San Nicolás, Ramallo and Timbúes, except for some specific cases. In turn, the grain receivers who joined the protest, had only agreed to a salary improvement in the ports in charge of the Association of Argentine Cooperatives (ACA), Site 0 of Quequén, Molinos Cañuelas and ADM Argentina.

Finally, for several days, the situation experienced in the exporting ports had an impact on the international price of soybeans in the Chicago benchmark market, which today registered a rise of almost 15 dollars in contracts expiring in the month next, they were trading at $ 476 a ton. The prices of wheat and corn also rose, where the latter reached its highest value in the last six and a half years, trading at USD 183.50 per ton.

I kept reading:

The price of soy rose almost 40% during 2020 and has already exceeded the barrier of 470 dollars per ton

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