ATILRA Issues a Statement on SanCor’s Delayed Liquidation

ATILRA said the former SanCor CUL cooperative had been in financial distress for nine years, dating from the start of its failure to pay employees. According to the union, the wage arrears have never been regularised. Insolvency proceedings began about 18 months ago, while the company requested its own bankruptcy four months before the statement was issued.

The union said the courts had not yet issued a final ruling on the substance of the case that would allow SanCor’s assets to be sold and creditors to be paid. ATILRA added that several potential buyers had purchased the tender documents and were prepared to invest, restart production and provide direct employment.

ATILRA described the continued delay in fully restarting the former cooperative’s plants as causing financial and social harm to workers, their families and other creditors. It also referred to employees who had lost access to the medical coverage provided through the union’s health fund after being excluded by Argentina’s Superintendence of Health Services.

The statement said the situation also affected workers who had accepted an early voluntary-retirement scheme and were still waiting for the liquidation of the sums owed to them. ATILRA said it had provided financial support and assistance from its own resources during the prolonged process, but that those resources had now been exhausted.

The union said it recognised the time required by the courts and the time potential investors might need to form partnerships. It also referred to people whom it accused of seeking to obstruct the process while workers faced financial hardship. The statement was issued by ATILRA’s national executive council.

ATILRA said it would not remain inactive and would organise actions with workers across the dairy industry. These actions, it said, would include marches, demonstrations, petitions and the legal trade-union measures provided for under Article 14 bis of Argentina’s Constitution.