Argentine Port Strike Supposedly Back On
Feb 17, 2011
The latest news I’m hearing from Argentina is that trade unions and grains exporters met for last-ditch wage talks on Wednesday afternoon, no resolution was made and the strike is back on. If you remember we talked about this on Feb. 2nd when workers at grain ports and soy-crushing plants in Rosario suspended their week-long strike after the government ordered both sides to take a break in order to resolve a dispute that delayed shipments and stoked global prices in the grain markets. From what I hear from guys on the ground is that nothing has changed. Basically the negotiations center around grain handlers and dock workers that are wanting a raise in minimum wage to $1,202 a month, equal to what the soy-crushers are earning. Inflation is hitting them deep in the pockets and they are struggling with being able to meet the rising prices. If demands aren’t met soon this could send the markets for another ride. Let’s not forget that last time workers managed to bring crushing plants and ports to a standstill for seven days and the markets reacted with a move to higher ground. This damage sent a shockwave through the markets and caused multi-million dollar losses for end-users alike. We will definitely keep an eye on this as it unfolds. Look for problems of this nature to start popping up more and more as countries all over the world are dealing with actual inflation that could provide fuel for more strikes.
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