Tensions are rising for the Paycueros tannery in Paysandú (Uruguay). Unions are on the warpath: they accuse the company of making unilateral decisions and are now also targeting the government (which will summon representatives of the Sadesa Group, the tannery’s shareholder).
The tannery crisis
Argentine Sadesa Group has subsidiaries in Uruguay, Paraguay, Vietnam, and Thailand. In Uruguay, it operates through its subsidiary Paycueros, which employs 220 people, 86 of whom are currently on temporary layoff. The situation is unstable because Paycueros periodically requests social safety nets without consulting unions. Moreover, the unions complain, the company has cut off all communication with them and refuses to negotiate expired collective labor agreements. According to Antonio Ferreira, president of the UTP union, failure to renew the agreement results in a 17% reduction in wages, reports El País. Ferreira also met with the Minister of Labor and Social Security, Juan Castillo, who promised to summon the tannery’s management.
Now they are also targeting the government
Local press reports that Paycueros produces around 35,000 hides per month, less than half of its production capacity. About 20,000 hides leave the plant bound for China in raw, salted form (source PIT-CNT), as also confirmed to La Diaria by Gabriel Otero, president of the committee. By giving up the sale of finished materials, the unions complain, the tannery fails to add value to the product and doesn’t keep employees fully employed. Workers’ organizations are raising their voices against the Ministry of Industry, accused of having granted Paycueros tax incentives worth 16 million dollars in 2024 for investments in new machinery. Union leader Ferreira thundered: “If there are so many investments, then they should maintain jobs!” Ferreira also said that the ministry will review the incentives granted to ascertain any irregularities.
Photo from Archive
Reada also:
