Argentine agro-export wage talks stall ahead of harvest peak

Wage negotiations between Argentine oilseed unions and agro-export companies have stalled, with no agreement reached as the mandatory conciliation period nears its June 18 deadline. The parties held another virtual hearing but failed to find common ground, and will meet again in person next Tuesday at the Ministry of Human Capital's Secretariat of Labor.

This crucial discussion occurs during Argentina's peak grain intake period, driven by an agricultural season projected to be one of the most significant in recent years. The Rosario Stock Exchange (BCR) estimates the harvest will reach 50 million tons of soybeans and 68 million tons of corn. The oilseed and grain complex is Argentina's primary source of foreign currency and a major contributor to the country's agro-industrial exports.

The industrial belt of Greater Rosario possesses the world's largest soybean processing capacity, and it is from this region that the majority of soybean meal, soy oil, corn, and other products are shipped. Labor conflicts in this sector are closely monitored by both the market and the government, especially during harvest months when the volume of goods for industrialization and export is highest.

Last month, agro-exports generated $2.677 billion, a 7% increase from the previous month. Year-to-date, companies in the sector have brought in $10.343 billion. Daniel Succi, the union secretary for the Oil Workers and Employees Union (SOEA) of San Lorenzo, stated that companies committed to presenting a proposal at the upcoming in-person meeting. The conflict began in late May when unions demanded salary increases, citing that the initial agreement of 12% at the start of the year had been eroded by inflation.

“

We just finished the Zoom hearing. There was no response, but we are moving to an in-person meeting on Tuesday at the Secretariat of Labor in Buenos Aires, where the companies have committed to bringing a proposal.