Photo: Stockfile/MercoPress

Argentina's Shrimp Industry Faces Unprecedented Crisis, Billions in Losses Amid Labor Dispute

ARGENTINA
Tuesday, July 01, 2025, 01:00 (GMT + 9)

Five Thousand Workers Unemployed, Over US$200 Million in Export Losses as Unions and Fishing Companies Lock Horns Over Wages.

BUENOS AIRES – Argentina's vital shrimp fishing industry is grappling with what is being described as the most severe crisis in its history, leading to widespread economic devastation. A staggering 113 freezer vessels are currently idle, leaving approximately 5,000 workers unemployed and resulting in over US$200 million in export losses. At the heart of the conflict lies a protracted dispute between fishing companies and key maritime unions over the adjustment of a decades-old Collective Labor Agreement.

The core of the disagreement revolves around worker production bonuses, which are controversially tied to a 2005 shrimp price of US12perkilo.WithcurrentinternationalshrimppricesplummetingtoaroundUS5.5 per kilo, fishing companies argue that this agreement has become unsustainable and are pushing for an adjustment to reflect current market realities.

Photo: courtesy Revista Puerto

While a partial agreement was recently reached with fishing captains, unions representing sailors—primarily the United Maritime Workers' Union (SOMU) and the Maritime Fishermen's Union (Simape)—have remained inflexible, rejecting any proposed wage adjustments.

This impasse has inflicted severe economic damage on vital port cities such as Mar del Plata and Puerto Madryn. Workers, who could potentially earn up to AR10million(approximatelyUS8,300) monthly with bonuses, are currently receiving only a basic wage of AR500,000(aboutUS420), a fraction of their potential earnings, creating immense pressure amidst ongoing labor negotiations.

Calls for Government Intervention Amidst Stalemate

The business chambers involved in the conflict—the Argentine-Patagonian Chamber of the Fishing Industry (Capip), the Argentine Chamber of Fishing Vessel Owners and Freezers (CAPECA), and CEPA - Council of Argentine Fishing Companies)—emphasize the need for a comprehensive resolution.

Agustín De La Fuente, president of Capip, stated that the agreement with the fishing captains "was the result of rigorous bilateral work, based on a detailed analysis of production costs and the economic situation facing the frozen shrimp industry." Eduardo Boiero, president of CAPECA, expressed confidence that seafarers would "adopt a similar stance, where reasonableness and dialogue prevail in order to find a comprehensive solution to this conflict that affects more than 5,000 families." The agreement with the captains reportedly includes using the export price of shrimp reported by Customs for production awards, provided it dynamically and accurately reflects market conditions.

However, SOMU, whose general secretary Raúl Durdos is taking a different approach. The union has petitioned President Javier Milei, criticizing Decree 340 on the deregulation of the merchant marine, and denouncing the paralysis of the 'tangonera' fleet (twin rig trawling shrimpers). SOMU asserts that the readjustment proposed by the chambers "has no legal or economic basis" as "there are no fishing companies in bankruptcy."

To resolve differences, SOMU is demanding government intervention in the form of tax exemptions. Their demands include a reduction in the Single Extraction Fee (DUE) and export taxes on fishing products, a temporary exemption for companies from fuel taxes (the second largest operating cost), and the establishment of an exception regime for social security contributions. Crucially, the union's petition makes no mention of revising the Collective Labor Agreement, escalating tensions and risking further unrest in the sector.

The deepening crisis underscores the urgent need for a negotiated solution to protect Argentina's significant shrimp industry and the livelihoods of thousands of its workers.

Source: MercoPress/Infobae

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