MercoPress. South Atlantic News Agency

Drastic cuts and layoffs in Chile's salmon industry

The world's leading salmon producing company Marine Harvest described the emergency program to be implemented in Chile's farms, --sacking 25% of personnel--, as “painful”, but the only one that ensures the survival of the company.

The decision which involves 1.200 workers as of next June was decided in Norway following on the poor results of its Chilean interests that have been plagued with an outbreak of ISA virus, infectious salmon anemia that has ravaged the company's salmon farms in southern Chile. In a brief release Marine Harvest said that losses in the last quarter of 2007 totaled 76 million US dollars and "to recover the business unit in Chile, the company will have to drastically reduce production in the coming months". Marine Harvest Chile has seen its production cut by half, not only because of the dead and diseased fish but because ISA has spread to future harvests drastically cutting down future production. Eight major Atlantic salmon fattening farms besides processing plants in Puerto Montt will be closed down by June but staff has been notified as soon as the decision was taken in Norway and with four months anticipation as evidence of "our commitment and loyalty" to personnel said Jose Pedro Alvarez, head of human resources. Marine Harvest also announced that one of the processing plants is to be sold to help pay for quarantine costs in disinfecting farms and the surrounding water, a process that "could take over two years, as long as new outbreaks are not reported". But the news has caused great concern among local elected officials and union leaders who believe the time span announced "sounds too long". Union leader Elias Treimun said he expects the Norwegian company to adopt the same attitude and conditions as if the workers were Norwegian. "These are not good news", said Cesar Barros president of SalmonChile who justified the decision. "When margins drop companies must adopt severe to very severe measures" said Barros who recalled that other factors are having its impact on the salmon industry. He mentioned the depreciation of the US dollar, rising costs, particularly transport "which is eating into the industry's margins and leaves her most vulnerable". In related news another salmon farm, Aguas Claras, belonging to the group AquaCHile is facing industrial action for the tenth day running. Given the alleged damage caused by strikers to property in the salmon farms involved, the company refuses to negotiate with the current union leadership, which is making the conflict longer and bitterer. Workers are struggling for better working conditions and higher pay. Overall 2007 was a difficult year for Chile's once booming salmon industry. Between 2002 and 2006, the industry's export earnings soared from 973 million US dollars to more than 2 billion, with annual growth rates of 18% (2003), 25% (2004), 20% (2005) and 28% (2006). Last year, in contrast, the industry grew by less than 1%.