Soy workers reach deal on wage hike, ending strike

Argentine soybean workers reached an agreement on wage talks, ending a strike that had snarled shipments and fuelled a surge in Chicago futures.

The deal includes a 35 percent salary increase in 2020, an annual bonus equal to the 2020 salary with the 35 percent raise, an exceptional bonus for the employees who worked during the lockdowns, and a further 25 percent adjustment in 2021, according to the exporters chamber Ciara-Cec.

The strike, which had lasted almost three weeks, had fueled supply concerns at a time when China is importing record amounts of the oilseed and dry weather threatens crops in Brazil and Argentina. That sent soybean prices to the highest in six years, with futures now close to US$13 a bushel. Soy oil futures also reached the strongest level since 2014, while meal touched a four-year high.

Workers who handle ship mooring will meet Wednesday with the chamber of tugboat owners as they look to reach an agreement, according to a statement sent by port and maritime chamber CAPyM.

Trade unions in Argentina remain strong, a legacy of the Peronist political movement that took back power last year. Wage bargaining across a slew of industries is fierce, with inflation running at 36 percent. The strike has snarled shipments, with about 151 vessels waiting at the nation’s ports as of Tuesday, according to the union of Argentine Marine Workers, or SOMU.

Ciara-Cec represents crop giants including Bunge Ltd. and Cofco International Ltd.

– BLOOMBERG