Terminal Cuenca del Plata (TCP), the main container terminal in the port of Montevideo and in Uruguay, suffered at least seven days of strike and only last Thursday began to slowly resume activities after an agreement between the workers, the company, and the Government.
TCP is a holding company comprised of the Belgian operator Katoen Natie, which holds 80% of the share capital, and the Uruguayan government itself through the National Ports Administration (ANP). It is, furthermore, the major logistical bet of the neighboring country, and through which progress is being made in deepening the access channels to establish itself as an operational hub for the Río de la Plata.
However, beyond the ongoing investments, TCP faces difficulties ranging from the extension of its contract to union unrest, including high costs and operational delays that hinder the objectives set out in its expansion plan.
Industrial Action
A few days ago, the TCP union was initially evasive and then ended up opposing the implementation of a new operating system introduced by the company which, although in the short term does not put jobs at risk, the union saw as a threat and doubled down: it demanded a reduction of the workday from 8 to 6 hours while maintaining the same salary (arguing that one sector of the company has had this regime for 15 years), and carried out a work stoppage.
The director of the National Ports Administration (ANP), Jorge Gandini, expressed his surprise at the demand and at the resistance to changing a technology that works without issues in other terminals.
Impact
The paralysis of the main terminal, which handles over 90% of Uruguay’s maritime flow, had serious consequences: the Uruguayan Exporters Union (UEU) reported million-dollar losses both due to exports that could not leave and delays in the income of supplies, machinery, and spare parts for the production chains.
Likewise, the port strike indirectly impacted the logistics of countries like Paraguay, primarily, since Montevideo is one of its ocean transshipment centers, but also several ports in the Argentine littoral that operate their transatlantic export and import cargo there.
The strike, ultimately, is another setback for the competitiveness of the Uruguayan port and its reliability, as it adds to the strikes in September, which caused an increase in cargo rollover due to the omission of port calls decided by the shipping companies, with the consequent increase in costs and deterioration of the port’s prestige.
Long Term
From the UEU, its president, Carmen Porteiro, warned that the inactivity generated “damage that is difficult to quantify” and pointed out that the loss of operational reliability could have long-term consequences on the decisions of shipowners and on the logistical planning of companies.
After the Government’s intervention, a 10-day truce was achieved to continue negotiating. But the union warned that it will not yield in its position and demanded that the Government apply the “same emphasis” in the negotiation with the company, warning that, while they are not against technological advances, these must be discussed under the laws of collective bargaining.
