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Uniting Food, Farm and Hotel Workers World-Wide


Union Campaign Wins Improved Terms for AmBev Uruguay Workers in Brewery Closure

Posted to the IUF website 03-Jun-2003

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The IUF-affiliated Sindicato de Obreros y Empleados de Norte�a (SOEN) successfully mobilised public support against the announced closure of AmBev's brewery in Paysand�, Uruguay, but was not able to reverse the decision to close the brewery or to save the 100 jobs that were threatened. As a result of the strong campaign, however, the union was able to sign an agreement with the company that provided acceptable solutions for each of the 100 workers affected. The malt factory will remain open, and will receive new investment to expand capacity, preserving about 40 jobs.

The agreement negotiated by the union provides for enhanced severance payment amounting to USD 15,000, enhanced early retirement pay, and compensation for lost working hours for those workers who remain employed.

A services co-operative composed exclusively of union members will be formed to perform certain functions now outsourced by the malt plant. This co-operative may also bid on work at other firms. This is a new departure for the union, and will require training for members of the co-operative.

The union recognises the significant role played by international solidarity organised through the Latin American secretariat of the IUF, and in particular that of the Brasilian union CONTAC-CUT, which represents workers at AmBev in Brasil. IUF affiliates around the world sent protests to the company and messages of support to the union.