Argentina's primary oilseed union, SOEA, is considering a national strike at soybean processing plants due to a wage dispute at the exporting giant Vicentin, as reported by a union representative on Wednesday.
According to SOEA secretary Martin Morales, Vicentin is required to settle February salaries, and the potential strike would involve multiple unions.
Once a leading marketer of processed soybeans in Argentina, Vicentin, headquartered in Santa Fe province, has faced difficulties after a recent court ruling deemed an agreement with its creditors as invalid, leading to an uncertainty regarding the rental of its facilities beyond February.
A source close to Vicentin indicated to Reuters that the company cautioned oilseed workers about potential payment defaults due to the court ruling, noting efforts to extend facility rentals and resolve the issue.
In response to the situation, the source blamed the Santa Fe Supreme Court for a "ridiculous ruling," impacting Vicentin's delicate financial state. The company's viability came into question when it suggested it might struggle to meet worker salary obligations after discussions with union representatives.
While Vicentin has temporarily halted its operations, other companies lease its facilities. The company's website data reveals that its three plants collectively process up to 21,000 metric tons daily and have a storage capacity exceeding 1.2 million tons of source materials and byproducts.
Facing bankruptcy proceedings since 2020 and halting payments amounting to over $1 billion a year prior, Vicentin continues to grapple with financial challenges.