These are Fanacif (owned by Frasle Mobility), Fábricas Nacionales de Cerveza (FNC) and Gloria Foods (from the Gloria Group of Peru).

Two companies stopped producing in Uruguay and a third announced the closure of one of its two plants in July. The three industries argued that the loss of competitiveness – and therefore lower profitability – was the determining factor in making the decision.

However, the union vision contrasts with that position and affirms that the resolutions respond to regional strategies and the convenience of importing instead of producing, in a scenario where the fate of the workers matters little.

Last month, Fanacif – owned by the Brazilian Frasle Mobility – announced the ceasing of its operations in Uruguay.

In a statement, the company reported that the decision was the result of an optimization strategy analysis in response to the business challenges faced over recent years. In this way, it decided to move the production of components for brake systems that was carried out in Uruguay to Brazil.

The company guaranteed that all obligations assumed by Fanacif with suppliers, banks, clients and workers will be fully fulfilled.

The logic of earning money

The measure resulted in the dismissal of 150 direct workers and the loss of another 50 indirect positions, according to the National Union of Metalworkers and Related Branches (Untmra). The company will continue in the Uruguayan market with the distribution of auto parts manufactured abroad. “They become importers; The logic is to make money,” said the president of the Untmra, Danilo Dárdano.

The main market for Fanacif is Argentina. During 2023, exports were US$14 million. In the first quarter they reached US$2.1 million. In this case, the Uruguayan company was unable to overcome the logic of recent years. Exports were made, but payments were delayed and that complicated collection and viability. That was one of the reasons that the company management conveyed to the union to explain the departure from the country.

Dárdano pointed out that the productive closure was surprising, beyond the fact that the situation in Argentina had been discussed internally. He recalled that at Fanacif historically there was good dialogue between the factory management and the workers, with beneficial working conditions and reduced hours.

“But when the Brazilians arrive it's usually not good news,” he said. At that moment, the definitions become regional and do not weigh the positions that Uruguayan managers or businessmen may have, who are also dragged by strategic decisions.

“In Uruguay, national bourgeois are needed, who like to be industrialists, not businessmen,” Dárdano stated in this regard.

The decline of the beer industry in Uruguay

Days ago, the management of Fábricas Nacionales de Cerveza (FNC) informed the union of the closure in July of the Minas plant, where liter Patricia and the can line are bottled. The factory is in the middle of a maintenance stoppage and that is why the workers are on unemployment insurance.

That day, the union had the intention of agreeing on the bases for the reinstatement of the employees, but came across other news. “It hit us like a bucket of cold water,” said the president of the Federation of Beverage Workers and Employees (FOEB), Fernando Ferreira.

FNC stated that for some years it has faced competitiveness problems compared to imported products that arrive at a lower price. This led to a migration of demand towards imported cans. Currently the brewery has 50% of its idle capacity and that is why it decided to concentrate production in the factory located in Montevideo.

The union took action and went on strike. In the first instance, the measurement is in the bottling area. The government quickly established two negotiation areas: one to discuss labor aspects and another linked to the competitiveness of the sector. If there is no progress in them, the FOEB is willing to paralyze the distribution of beer.

Last Friday, at the beginning of the strike, the FNC union held an assembly in front of the doors of the brewery. Ferreira proclaimed that we are witnessing the “onslaught” of a multinational that does not make its decisions in Uruguay.

“You can drink them in Belgium or in Brazil,” he noted, referring to the fact that FNC is part of AmBev, based in Brazil and a regional subsidiary of AB inBev, a Belgian multinational in the beer industry.

A meeting between representatives of the company and the Ministries of Industry and Economy is scheduled for this Tuesday. There it is expected that the official delegation will make some proposal that will lead FNC to review the position on the closure of Minas.

Dairy industry leaves Uruguay

Earlier this month, Gloria Foods – of Grupo Gloria of Peru – canceled its production in Uruguay. A couple of days ago he had communicated his decision to the government. Although the closure was handled as a possibility in the dairy sector, it was not expected that the definition would be taken abruptly and without prior official notice. The decision resulted in the dismissal of 43 workers who found out about the termination through a statement sent by WhatsApp.

“I had been losing plant for a long time. It is exclusively about business,” said the president of the National Milk Institute (Inale), Juan Daniel Vago, to the Tiempo de Cambio program on Rural radio.

According to sources in the sector, the dairy group views Uruguay as a country with productive potential, but with competitiveness difficulties that hinder profitability. In addition, the company had to face the purchase of technology and commissioning of the plant located in Nueva Helvecia. Investment was essential to improve production efficiency and lower costs.

On Saturday, local dairy unions described the closure as “a lack of respect for Uruguay.”

“We consider that the actions of this company cannot be justified by citing economic reasons, since, if that were the case, it should have been announced with minimum advance notice so that both producers and officials could take the necessary precautions,” he said.

“We express our absolute rejection of the way the Gloria company acts, which does not match the respect with which our country received it, and we call on the rulers to analyze measures to prevent actions of this type from being repeated,” he concluded. .