Uruguay: dockworkers reach agreement with port operator and settle dispute

RIO DE JANEIRO, BRAZIL – Single Port Union and Related Branches (SUPRA) spokesman Álvaro Reinaldo said the agreement was reached after several hours of negotiations at Uruguay’s Ministry of Labor and Social Security, which ended at around 1 AM.

Workers approved “by a large majority” the collective bargaining agreement reached at Tuesday’s assembly, and the official signing is expected to take place this Wednesday afternoon.

“The benefits we were seeking more than anything else was a guaranteed income that would enable workers to know how much they would receive at the end of the month and to have an idea of what their salary would be,” he said.

In this respect, he explained that negotiations have been ongoing since April this year, but a few days ago the conflict “became more complex” due to a 72-hour strike that completely paralyzed port operations and had an impact on the country’s economic activity.

Port operator TCP issued a statement in which it highlights “the patience and effort of all parties” to reach the final agreement and expressed its satisfaction for the achievements, while it also stated its willingness to “maintain a dialogue that allows to solve differences without affecting the port’s regular activity, at all times.”

After the assembly, at 7 PM local time (22:00 GMT), the port resumed its normal operations.

Despite this resolution, conflict persists with respect to port activity due to Belgian company Katoen Natie, owner of 80% of TCP, while the remaining 20% belongs to the Uruguayan state.

The Belgian company was granted an extension of the concession until 2081 – which began in 2001 and was to run for 30 years – in an operation announced last March for US$455 million to expand the Specialized Container Terminal, thereby extending it for another 50 years.

As a result, Katoen Natie settled its dispute with the Uruguayan government “for violations” of the Treaty for the Promotion and Reciprocal Protection of Investments between Belgium-Luxembourg and Uruguay.

Dockworkers argue that this extension will impact Montecon and result in the loss of hundreds of jobs, and therefore negotiations are underway to “guarantee that this agreement between the government and Katoen Natie will not affect workers.”

“There are good indications, it is not easy, but we intend to pursue the matter because working conditions are the most difficult to enforce,” Reinaldo said.