Paycueros, a major tannery in Uruguay, has announced the layoff of 50 workers and placed another 150 on temporary unemployment following a tripartite meeting on Monday. The company cited low sales and market difficulties as the primary reasons for these decisions.
The Union of Paycueros Workers (UTP) is pushing back against the layoffs. Union president Antonio Ferreira stated that if a resolution is not reached in upcoming meetings with the Minister of Labor and Social Security, workers will escalate the situation into a conflict by next week.
Out of the 550 employees, the 50 workers being laid off had already been on unemployment benefits since September last year. Their benefits, set to expire on April 9, were not extended, leading to their dismissal.
Additionally, another 100 workers were sent on temporary unemployment this week, with 50 more expected to follow in the coming weeks.
The union had proposed economic incentives, worker rotation in unemployment benefits, and early retirements as potential solutions.
However, the company rejected these alternatives and insisted on making its own decisions regarding which employees will be placed on temporary unemployment.
“The company refuses to consider our proposals and insists on deciding who stays and who goes.”
Union president Antonio Ferreira
Paycueros is the only tannery in Uruguay that completes all stages of leather processing. The crisis is affecting workers across all departments and has significant economic consequences for Paysandú, where the company is based.
The situation is not unique to Uruguay. Paycueros operates in Vietnam, Argentina, and Paraguay, where similar challenges have arisen. In Argentina, 100 employees were dismissed, while in Paraguay, the workforce was cut from 250 to 100 workers due to financial struggles.
