Photo: Ministerio de Capital Humano

Labor Agreement Resolves Shrimp Conflict, Fleet Reactivated

ARGENTINA
Monday, August 04, 2025, 06:00 (GMT + 9)

After a 120-day paralysis that caused millions in losses, business chambers and the SOMU union sign an "exceptional" deal to restart Argentina's main fishing season.

A prolonged conflict that had kept the langoustine freezer fleet paralyzed for more than 120 days has come to an end, providing a vital breath of fresh air to a key industry for the Argentine economy. Business chambers and the United Maritime Workers Union (SOMU) have sealed a transitional agreement at the Secretariat of Labor, allowing over 100 freezer vessels to resume operations for the remainder of the season.

The dispute, which pitted the CAPECA, CAPIP, and CEPA chambers against the sailors' union, was centered on a reduction in "production items" that constitute the bulk of the workers' salaries. SOMU, which represents 80% of a fishing vessel's crew, resisted pressure for months to adjust these values—a move that companies deemed essential to avoid operating at a loss. This conflict had already led to a "virtual paralysis" of the fleet, a drop in exports, and a substantial decrease in foreign currency entering the country, resulting in estimated losses of $200 million

The new agreement, signed on Friday afternoon, stipulates that 70% of the salaries for sailors and maintenance personnel will be paid as a non-remunerative concept. While this represents a reduction of about 12% in production values—far from the 30% that companies had sought—it was enough to break the stalemate. The deal also specifies that this percentage will be taken into account for the calculation of severance pay, social security contributions, and health coverage, ensuring a baseline of rights for the workers.

Pressure from the union's grassroots was crucial in reaching the consensus. "Both sides had to give in to reach an agreement and not harm the workers," explained Oscar Bravo, general secretary of SOMU Mar del Plata, to La Capital. The deal is "exceptional" and will be in effect from August 1 to October 31, 2025, with the possibility of an extension until January 2026, providing a much-needed reprieve for a suffocating industry.

This agreement, which follows similar deals already reached with the Captains' Union and SICONARA (engineers), will allow the ships to set sail in the coming days. The sector now aims for a "rescue" that could generate between $250 and $300 million in exports over the next two to three months.

"The understanding has highlighted the need for collective bargaining agreements to be in line with the reality of the activity," stated Eduardo Boiero, president of CAPECA. He added that this is "the only way to reconcile the needs of the workers with the economic viability of the industry."

The document acknowledges that the industry faces a critical situation, exacerbated by falling international prices, rising operating costs, and fierce competition from farmed vannamei shrimp. This sets the stage for a deeper debate about the future: the need to adapt labor agreements to the new reality of a global market impacted by competition and the post-pandemic slump in demand.

Meanwhile, hundreds of workers, including the 600 from the 25 boats moored in Mar del Plata and many more in the ports of Puerto Madryn (Chubut) and Puerto Deseado (Santa Cruz), will be able to return to their jobs. In this way, the Argentine langoustine freezer fleet, a key species for the industry and for national exports, can resume its activity and compete once again in international markets. The agreement, signed by all parties, will be ratified by the Secretariat of Labor, Employment, and Social Security, but has already taken effect immediately.

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