The Union of Uruguayan Exporters (UEU) called for a prompt agreement between Katoen Natie and the workers’ union of the Terminal Cuenca del Plata (TCP). This is to avoid “serious consequences” resulting from the halt of foreign trade operations at the Port of Montevideo.
It should be recalled that TCP has had inactive operations since October 2, following the decision by the majority shareholder Katoen Natie to implement the Navis N4 system and, consequently, the refusal of the port workers to perform their duties. Likewise, the union states that it will only accept the system if the company reduces the workday to six hours, with payment corresponding to eight hours.
In this context, the UEU issued a “call for reflection on the serious consequences that the conflict at the Port of Montevideo has for the country. A conflict is developing that is paralyzing a large part of Uruguay’s foreign trade operations.”
“This situation adds to other stoppages that have occurred, for various reasons, at the Port of Montevideo and which have been affecting the commercial flow. As has happened on other occasions, the current scenario generates uncertainty and great concern for the export sector,” it added.
Furthermore, the business association emphasized that “while respecting the legitimate positions of each of the parties, we encourage reaching an understanding that allows for the recovery of the normal functioning of port services. The stoppage of operations leaves goods unshipped, supplies unreceived, and million-dollar losses for each day without activity.”
“Measures of this kind jeopardize the fulfillment of commitments made with foreign clients, damaging Uruguay’s image as a serious and reliable supplier. This affects both those who work in exporting companies and those who are part of their supply chain,” it added.
The conflict between the port union and TCP has led ships to cancel their calls at the Uruguayan port facility of Montevideo. Meanwhile, a Mediterranean Shipping Company (MSC) vessel remained stranded at the terminal for one day before moving to a public dock.
“At a time when the international context is extremely challenging and uncertain and when ship omissions have increased, Uruguay needs to form a common front to position itself, compete, and defend its presence abroad. It is for the above reasons that the UEU requests seeking the mechanisms that allow for a prompt resolution of the conflict,” the group stressed.
The tension between TCP, a company in which the Belgian Katoen Natie is the majority shareholder with 80% ownership, which it shares with the Uruguayan State that owns the remaining 20%, and the TCP Union continues to date. The cause is the implementation of the Navis N4 system, which has resulted in the paralysis of the port facility due to the workers’ refusal to perform their duties.
