Photo: Revista Puerto

Opening of shrimp fishing: Is it a strategy to renegotiate the 'Agreement' with the unions?

ARGENTINA
Thursday, March 13, 2025, 02:00 (GMT + 9)

The tentative date for the opening of shrimp fishing in national waters, outside the closed season area, is March 15th. 

However, most fishing companies do not plan to start the season due to current labor conditions. According to Revista Puerto, the main objective is to renegotiate the collective bargaining agreement.

Shrimp fishing vessels moored in port awaiting the start of the harvest. Photo: Puerto Magazine

The technical consultation made to INIDEP by the Federal Fisheries Council regarding the biological viability of opening shrimp fishing is considered a mere formality. It is public knowledge that there are no impediments from a biological standpoint. Therefore, it is highly likely that the fleet will be authorized to fish for shrimp from March 15th. Nevertheless, the effective start of the season appears uncertain.

Companies argue a lack of profitability and the impossibility of covering crew labor costs. They claim that, under current conditions, fishing activity is unviable. This stance has been expressed by shipowners from various fleet strata. Despite this, they have requested authorization from authorities for vessel dispatch to fishing. The question that arises is: what is the purpose of this request? The answer lies in the intention to pressure maritime unions to agree to a renegotiation of the agreement.

Given the imminent opening of the season, the obligatory question is: how do they plan to start fishing on March 15th? The answer is unanimous: "We do not plan to go out fishing." In a recent post, Damián Santos, CEO of Grupo San Isidro, stated: "The day the opening occurs, a resource will be available whose market price is $5.5 USD on average, while the costs of fishing, processing, and selling amount to $6.5 USD. The options are clear: either we don't fish, or we adapt the business to the new reality. It's a matter of simple logic."

The difference between costs and the selling price is real and represents a loss for companies. However, the solution is not as simple as it is presented. Current conditions do not allow for an agreement similar to the one reached in Rawson, where it was agreed not to apply salary increases. The current situation is more complex, as the objective is to reduce workers' income levels.

From a legal standpoint, it is not possible to establish an agreement that contravenes what is stipulated in the Collective Bargaining Agreement. Nevertheless, the trawler fleet seeks to reduce the dollarized reference value applied to production by 30%. To achieve this, it is necessary to modify the agreement, which is only possible with union acceptance.

Juan Navarro, Secretary of Fisheries of SOMU, has publicly expressed his position, making it clear that they will not accept a salary reduction: "We will meet as many times as necessary, but our answer will always be the same: no, no, and no." The chances of the union agreeing to sign a downward agreement are slim, especially in an election year when they will seek re-election.

The reduction in production values that companies intend would imply a decrease in the price per kilo of shrimp from 35 to 25 pesos (at the current exchange rate). This would only be possible if the rank-and-file pressure their leaders to accept the proposal. Only then would the union be forced to accept a 30% reduction in the reference value.

The numbers don't add up, and the solution isn't simple. The opening of the season does not aim to start fishing but to begin arduous negotiations that will surely generate conflicts. The ultimate goal is to reach an agreement that allows the season to start in national waters within the closed season.

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