BUENOS AIRES (Reuters) — Expectations of a record soy crop will likely push grain export companies with operations in Argentina to work toward a quick wage deal with port workers, setting the stage for smooth export of the country’s April-May soy harvest, union officials say.
Despite inflation expected by private analysts to reach more than 30 percent this year, union leaders say the wage talks set to start in the days ahead should yield an accord without any prolonged strikes.
“It looks like a deal can be pretty easily reached,” said Pablo Reguera, head of the soy crushers’ union in San Lorenzo, one of the ports that makes up the Rosario grains hub.
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He predicted accords providing wage increases of about 30 percent. An easy round of wage deals would come as a relief to exporters eager to start shipping Argentina’s soy crop.
The South American country is the world’s top exporter of soyoil and soymeal, as well as its No. 3 supplier of soybeans.
The Rosario grains exchange expects the country’s upcoming soy harvest will come in at 54.7 million tonnes versus 48.3 million in 2013. The Buenos Aires exchange sees the upcoming crop at 54.5 million tonnes versus 48.5 million last season.
The Argentine government called the 2013 crop at 49.3 million tonnes and has not yet issued a 2014 forecast. The country’s record crop was 52.7 million tonnes collected in 2010, according to the agriculture ministry.
“This time around the export companies are going to want to sign their labour contracts without conflicts,” said Pablo Palacio, head of Rosario’s grains handlers’ union. “The sector is very strong economically, so I don’t see a lot of problems.”
Argentina has a long history of strikes and labour action, often related to high inflation and poor economic management by successive governments. Teachers in Buenos Aires province have been on strike for two weeks over wages, while labour groups in other sectors of the economy threaten work stoppages.
Port workers seem exempt, for now.
“The outlook is good,” Edgardo Quiroga, spokesman for San Lorenzo’s CGT port workers’ union said. “Our members will come out with a basic salary that is higher than what 99 percent of other unions receive in Argentina.”
