May 30, 2012

Argentinean oilseed crushers to strike on wage issues

The general secretary of the local union told Reuters that on Wednesday (May 30), Oilseed crushers in Argentina's main grains hub Rosario will go on strike over wages.

The South American country is the world's No. one exporter of soyoil, which is used for cooking and in the booming biofuels industry, and of soymeal, used as animal feed.

"As of the first shift tomorrow we will go on strike, with picketing at the entrances of the crushing plants," local union leader Pablo Reguera told Reuters on Tuesday (May 29).

Labor disruptions are common in Argentina, where double-digit annual inflation fuels steep wage demands.

Some strikes last only hours or a few days. The government often intervenes when they drag on long enough to threaten the flow of exports.

Export companies with operations in Rosario include Cargill, Bunge Ltd and Noble Group. About 80% of Argentina's grains exports are loaded at Rosario's terminals, which line the Parana River and offer access to the shipping lanes of the South Atlantic.