MercoPress. South Atlantic News Agency

Uruguayan croaker fleet idle because of labor dispute

Most of the Uruguayan fishing fleet is idle because of a two months labor dispute and has hit particularly hard the export of Atlantic croaker which is a shared resource with Argentina.

Last year Uruguayan fisheries exports totaled 177 million US dollars of which 45 million was croaker mostly to China and Africa. The 33 vessel fleet has been moored since the end of April following a dispute with the unions that are demanding a salary and benefits increase in the range of 35%, the percentage that croaker has increased in the last eighteen months. Ship owners are willing to offer14% (conditioned to a three years agreement) arguing that the crew already receives part of the 35% price increase as a percentage of the catch. Since all payments are in US dollars, unions claim the depreciation of the US currency has cut into their purchasing power and a new income tax system to be implemented in July in Uruguay is expected to bite deep into the fishermen's pockets. The average crew member makes a basic 1.000 US dollars per month plus the catches' percentage and off season benefits. However the dispute is causing serious problems to the Uruguayan industry since croaker in the River Plate and adjoining areas is a shared resource with Argentina that is taking advantage of the current strife to catch a growing percentage of Uruguay's quota and is visiting the country's traditional clients. According to Uruguay's president of the Fishing Vessels Chamber Juan Laxague the bilateral agreement with Argentina establishes a total allowable catch of 36.000 of croaker, 70% in the River Plate and 30% in the adjoining area. The River Plate TAC is evenly split between the neighboring countries (approx 12.600 tons) and the other 10.000 tons in the adjoining area. "This means Argentina is catching the River Plate share of 12.600 tons and taking full advantage of the other 10.000 tons. So Uruguay is left with only 12.600 of which a percentage has been fished because the season begins in January", explained Laxague. "So far we've lost 10 million US dollars in exports and when the joint River Plate administration committee meets and declares the season over, that's the end for us, plus the loss of overseas markets to Argentina", he added. Laxague said Argentina taking advantage of the situation licensed an additional 50 vessels to catch croaker this season. The rest of the Uruguayan fishing fleet faces a complicated scenario: the hake vessels are operating normally but of the eleven tuna vessels nine are docked and in conflict.