The Avex Dánica company, owned by the Beltrán Group of Cordovan capital, reported on Wednesday the closure of its margarine production plant located in Llavallol, Buenos Aires.
Beltrán acquired the operations of that plant and the one located in Villa Mercedes from the BRF Group at the end of 2018 and now indicated that “as a consequence of excessive labor costs that the firm cannot face, and due to a long-standing union conflict that has not it finds a channel, it is forced to cease operations ”.
According to the company, the economic recession, aggravated by the emergency that triggered the Covid-19 pandemic, further deepened the complications that the firm had been suffering as a result of “an excessive salary demand from the Oil Federation unions.”
Penalty fee
In this context, Avex Dánica could suffer the imposition of a millionaire fine by the government of Buenos Aires, headed by former Minister of Economy Axel Kicillof.
As published Clarion, from the Buenosairean Ministry of Labor consider that this closure “is a serious fault”, because “these types of situations cannot be admitted at a time of high sensitivity for people”.
On this point, they recall that the presidential decree that prohibited dismissals and suspensions without just cause is in force.
Sources of the Buenosairean Government maintain that “there were no reasons to stop complying with the obligation to continue operating, and more at this time, for what food production means.”
That is why they began the procedure to make the fine effective, which according to the General Regime of Penalties for Labor Offenses modified in 2014 (Law No. 26,941), if it is finally classified as a serious offense it could reach 2,000 percent of the minimum wage, vital and mobile for each affected worker.
Some 150 people are not working as a result of this situation.
The conflict
As mentioned, the company blames this union decision on the union that “has been demanding wage guidelines specific to the export market that are inapplicable and excessively burdensome for the activity that Avex Dánica deploys in the country.”
“These are demands that make business continuity unfeasible under current conditions. We cannot continue like this, ”said the company.
He also pointed out that he has open a crisis prevention procedure within the scope of the Ministry of Labor, Employment and Social Security of the Nation and that, “despite the company’s efforts to reach an agreement in this area to sustain employment sources , the unions have deployed a fierce removal of collaboration in full quarantine that now forces the definitive cessation of activities ”.
Likewise, he denounced that “the Ministry of Labor of the Province of Buenos Aires ordered a compulsory conciliation that was not complied with by the union leaders who requested it, all of which resulted in an operational check for the establishment.”
Avex Dánica also accuses the union of not having collaborated in carrying out “supplementary” activities, after the company had to remove 24 workers from risk groups from work. Therefore, he acknowledged that there were layoffs.
“The internal reorganization to respond to the emergency led to the dismissal of workers with just cause for refusing to carry out their work on additional hours, as required by the essential nature of the activity decreed by the government, which triggered a series of protests by the Union of Workers and Employees of the Oil Industry (SOEIA) ”, continued Avex Dánica.
Under this conflictive scenario, the company called on workers to resume negotiations within the framework of the crisis prevention procedure, “to find sustainability conditions that allow the resumption of the manufacture of table margarines, a fundamental product for the food of Argentines.”
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