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Argentina Paperworkers at Massuh SA Receive Assurances of Pay

9 February, 2009

 

A wage arrears dispute at a Argentina pulp and paper mill was resolved, though only by earnest intervention by Buenos Aires Minister of Work Oscar Cuartango 11 days ago. Some 430 workers now will get back wages in a guaranteed payment plan.

Their salaries have been owed them since December and January when family-run Massuh SA halted its payroll at the Quilmes pulp and paper mill near Buenos Aires.

The ICEM cited the dispute last month, and sent a protest letter to the company, with copies to both the federal and state Work ministers. ICEM Argentina affiliate Federation of Workers’ of Paper, Carton, and Chemical (FOEIPCyQ) Unions championed this grievous breach of fair treatment and received scores of support letters from ICEM affiliates worldwide. Massuh SA is owned by the interconnected Massuh and Petrocchi families of Argentina, which also has major holdings in another Argentina paper enterprise, Fibra Papelera.

Massuh SA, in April 2008, sold a paper converting plant in San Luis to Ledesma, a Blaquier family operation, and earlier had spun a brown paper plant in San Justo off to Fibra Papelera. Because of the recession in finished paper production, Massuh acquired a US$40 million loan in mid-2008, a loan in which the lending institution granted an 18-month grace period before payments are due.

FOEIPCyQ said in a statement to the ICEM: “We extend our deep gratefulness to the many unions who heard the ICEM’s call for assistance and support for our working companions of the Massuh company. This is now a triumph of the workers because it was their iron will which would not allow their rights to be taken from them.”