SanCor Admits Financial Stress Amid Labor Conflict

SanCor Struggles with Financial Challenges

SanCor, a prominent player in Argentina's dairy industry, finds itself in a tumultuous financial situation, admitting to ongoing stress and facing renewed labor conflict.

Financial Constraints and Labor Issues

The company has announced continued financial limitations, leading to the division of salary payments. The Association of Dairy Workers of Argentina (Atilra) has raised concerns over unmet obligations, highlighting a tension that could lead to organized labor action at the national level.

Future Uncertainties

SanCor's spokesperson expressed a pressing need to address these challenges, warning of future uncertainties if financial aid is not secured within the next four months. The lack of working capital threatens to disrupt production standards and financial commitments to employees.

Investment Challenges

Attempts to attract fresh investments have stalled as potential investors remain indecisive. The company's past conflicts have led to significant asset reductions, and the failure to resolve this may have unforeseen effects.

Possible Consequences

Atilra plans to file complaints regarding compensation defaults, including an unpaid bonus scheme. Production shutdowns in certain facilities have compounded these issues, with potential re-openings conditional on economic improvements.