With Héctor Ponce

Dreams and Convictions

of a Union telling

the world: yes we can

 

Héctor Ponce, general secretary of the Argentinean Association of Dairy Industry Workers  (ATILRA), gives an interesting view on the dairy industry in Argentina and the union challenges.

 

-We are nearing the Conference, an old aspiration of ATILRA and the New Zealand Dairy Workers Union (NZDW) ...

-It is a challenge shared with our brothers and sisters of New Zealand  which now becomes true, strengthened by a massive participation of delegations from all over the world.

 

This Conference has a distinctive feature-- the opening to other sectors. This Conference will not only be joined by unions defending labor rights for dairy workers, but also by representatives of primary production, representatives of the industry and of the government.

 

We, ATILRA and Rel-UITA, consider it is necessary to address problems and challenges throughout the production chain because the labor and wage conditions of workers are linked to the general status of this industry.

 

-And, speaking of this industry, what is your evaluation of its situation?

-I have favorable expectations. For the first time, the government is preparing a draft of a Strategic Plan for the dairy sector of Argentina, where the participation of all the different players of the dairy chain is expected. This is important, every sector contributing with views, stating the issues where they do not agree and/or making proposals of change, as appropriate.

 

It is important to stress that we will have a Plan built collectively and democratically, and ATILRA will be a part without any complex because our only aspiration is for the better of the dairy industry.

 

-For this plan to become a State policy the active and effective commitment of all sectors involved is crucial ...

-¡Exactly! That is what Argentina has always lacked.  As it also happens in other countries where there are State policies for different industries but not for dairy. 

 

This is an opportunity to implement a Strategic Plan which will position this industry in the place it deserves. Undoubtedly, the Argentinean dairy industry strengthens the regional economies, it is essential for a  harmonious country growth, particularly for places of the countryside located far away from large metropolitan agglomerations.

 

-This sector distributes revenues and creates employment...

-No doubt.  It is easy to tell when there is milk production in a town. Firstly, dairy farming implies 365 days of work and needs people residing in rural areas. Where there is dairy farming there are towns, schools, a living history and employment. There is work for veterinarians, agricultural engineers in grassland management, and for the people in general. Nearby, there are also milk processing plants where technicians, truck drivers and other personnel work.

 

In fact, any government with a good understanding of this needs to encourage policies for the dairy industry to be well positioned in the social and economic context of a country.

 

-A few weeks ago, travelling from Cordoba to Sunchales, I was able to see huge plantations of soy and loneliness, and whenever I spotted a small house, there were cows, dairy industry and towns...

-That is a very sad story of our country in the past years, many people, unaware or mislead, embarked themselves in production models that are depleting the country. No one can deny the value of agriculture, but the soy bean model of our country is displacing milk production and causing poverty in the countryside.

 

There is a huge difference between the possibilities of agricultural and dairy production in certain areas of Argentina. The dairy industry, in spite of all the difficulties, facilitates homogeneous growth, while soy production is very profitable only for a few who do not even live in the communities. Dairy farming is different.

 

-So, is it worrisome to have lost around 40 thousand dairy farms in the past 20 years?

-Having witnessed how many small farms collapsed is very concerning. Even if the amount of milk processed in this country is rather stable, the number of dairy farmers has gone down and this is connected with the fact that many small dairy farmers were absorbed by larger farms.

 

This is why the Plan to be implemented intends to benefit and protect small and medium size producers. I think this is essential because they are a boost to the economies of large areas of the country.

 

-But how can an industry be saved when the farmers are often paid below their costs?

-This has been one of the big issues for the producers in the past years. Nobody can work below his own costs. Having a daily economic deficit becomes a deep financial problem within the mid and long term. This is the reason why many farmers went bankrupt and abandoned dairy farming.

 

-The dairy sector is highly transnationalized globally, is this happening also here?

-In the two main dairy companies of the country, whether because of their history or the number of litres they process, there is involvement of foreign capitals. There is also an increasing penetration of transnational companies in the food industry, now also in dairy.

 

-The number of workers of this industry has been decreasing?

-No, in spite of the bad times in 2007 and 2008, I would say that it is growing now. And it could be even better, because in this industry there is an average 40 percent of  idle capacity...

 

-What is the explanation for that?

-There is lack of raw materials, and, also, in Argentina in the nineties there was the impression that growth would be sustained over the years. Based on these projections, many companies got into debts for technological improvements, because they anticipated a growth in the supply of raw materials. Such growth did not happen and that is why we have this situation now.

 

-Your union has an interesting position about the production of powdered milk...

-You are right, in the production of powdered milk there is no job creation. Plants are pseudo-dairy factories but they only dry milk for export with low technological input and a low employment. The downside is that the plant owners are treated in the same way as those who virtually gave birth to the diary industry of Argentina, who have been very good for farmers, with investments in technology, taking advances in technology to the countryside and investing to be prepared for domestic competition and for exports.

 

Due to the international price of a tonne of milk, all other companies can do is stock raw materials bought at good price  and outsource their production-- because they lack a structure and employees. We hope that the Plan being prepared now will also consider this situation. 

 

-And what is the union situation?

-Out of 30 thousand workers of the industry, 25 thousand are members of ATILRA. In 2002, when we took office, there used to be 11 thousand members and we have not stopped growing ever since.

 

-Is there strong outsourcing in your sector?

-It used to be a problem, but we corrected it. Outsourcing was very strong in the 90s,  a severe setback for union work and laws then used to favor the employers...

 

-In the times of Menem...

-Of course. In dairy, many milk processing plants used labor-hire agencies, destroying collective bargaining benefits that ATILRA used to have back then. It was a hard time when many "junk laws" were passed for the flexibilization of the labor market.

 

Thanks to the work developed by the union, with strong pressure and mobilization, we managed to put an end to outsourcing. It was not easy for the union, but nowadays all workers who used to be outsourced are now covered by the Collective Agreement and members of our union.

 

-What is your opinion on the idea of the NZDWU of including a global department, a global network of dairy workers in the IUF?

-It is crucial and necessary! I have read that there are other unions with the same opinion. In a globalized world, we, as dairy workers, cannot hide out from the changes that are taking place.  We need a strong front of all the unions representing dairy workers.  It is indispensable. 

 

-Faced with globalization, many unions get paralyzed, invaded by fatalism. How come ATILRA has not become paralyzed?

-Because when there are dreams and convictions, fears disappear, and when this happens we know that yes, we can, and that is our reality.

 

We have no fears; we have a port of destination, a strategy, with our best people servicing these strategies, so it is impossible not to be able.