Argentine food union demands shareholders personally cover worker compensation amid layoffs

The Argentine food industry union STIA is escalating its legal strategy against Granja Tres Arroyos (GTA), demanding that the company's managing partners and majority shareholders be held personally liable for worker indemnities. This move comes after GTA announced 269 layoffs, prompting the provincial government of Entre Ríos to convene a mandatory conciliation hearing.

During the hearing in Paraná, STIA not only pushed for an evaluation of the individual, subsidiary, and unlimited liability of GTA's principal shareholders but also presented proposals for reopening the La China plant in Concepción del Uruguay. The union expressed willingness to discuss a reduced operational capacity and workforce if the company can demonstrate financial constraints and present a concrete plan for resuming production.

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We are asking for the personal responsibility of the managing partners and majority shareholders so they can respond with their assets for the impact and damage.

STIA emphasized that the legal claim for personal liability is grounded in Argentine corporate and civil law, as well as the Federal Labor Pact. "We are asking for the personal responsibility of the managing partners and majority shareholders so they can respond with their assets for the impact and damage," stated Julio Chamorro, STIA's general secretary for the Concepción del Uruguay branch, asserting the legal validity of the claim. The union's assertive stance aims to ensure accountability from company leadership amidst the crisis.

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The union STIA formalized a written presentation demanding that the individual, subsidiary, and unlimited liability of the managing partners and majority shareholders be evaluated.