The only tannery in Uruguay handling all stages of the tanning process has announced a round of layoffs, with even more to
Paycueros, which is owned by tanning group Sadesa and employed a total of 550 workers, has dismissed 50 people and plans to dismiss another 150 employees in the next few weeks.
The company’s union continues to look for alternative options is meeting with Minister of Labor and Social Security Juan Castillo to discuss ways to avoid job losses or strikes.
Paycueros Workers Union President Antonio Ferreira attributed the decision to “low sales and market difficulties”.
The union has proposed several measures, including economic incentives, staff rotation within unemployment insurance and early retirements. However, Ferreira stated that the company rejected these proposals, opting instead to unilaterally select which workers would enter unemployment insurance.
Ferreira also noted that Paycueros’ multinational parent company operates factories in Vietnam, Argentina and Paraguay, where similar layoffs are occurring due to a lack of unemployment insurance benefits. In Argentina, 100 workers have been laid off, along with a suspension of production, while in Paraguay, the workforce has been reduced from 250 to 100 employees.
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