The largest concerns Paycueros, which has failed to meet the requirements needed to extend social safety nets for 89 workers and is now preparing to lay them off. But Paycueros is not the only tannery in trouble. Across Uruguay, the sector is in crisis — and all are calling on the government for solutions. Employees of Dofín have also staged protests, demanding “job security”.
The tannery crises in Uruguay
The Paycueros affair, ongoing for years, has now taken on a political dimension. According to trade unions, it is the fault of the Social Security Department within the Ministry of Labour that the company is able to proceed with the 89 redundancies. Union representatives argue that the government should have encouraged the tannery to meet the conditions required to continue receiving social support, rather than allowing it to cut staff. The ministry, however, rejects the accusation.
As reported by the local press: “We granted extensions in October 2023 for 66 workers, in December 2024 for 49, and twice in 2025 for a total of 103 employees”. In other words, the government insists it has made every effort to safeguard jobs. “In September, one month before the latest request concerning the 89 workers, there were 220 active employees and 138 receiving subsidies”, the ministry source continued. “Of the 89 being laid off, 22 would be receiving a third extension — meaning they would have received company subsidies for a total of a year and a half”.
Protests
But the Paycueros case is not the only one. Workers from the Dofín tannery have also demonstrated outside the Ministry of Labour. According to local media, their concerns are twofold — and somewhat contradictory. On one hand, they have joined broader protests from other sectors demanding wage adjustments. On the other, they are seeking assurances over “job security”, as the company has threatened to file for bankruptcy. Workers are eager to see the crisis resolved before it reaches the courts.
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