On Friday, October 21, management called all its workers to the plant’s cafeteria and announced: “The factory is closed.”

Sirel spoke with Gerardo Pereira, general secretary of the Autonomous Tobacco Workers’ Union (SAT), to learn more about the closure and where the workers stand now.

-What has happened since the announcement?

-We’ve been occupying the factory since October 21 (the day the announcement was made), and we claim that the company’s decision was made in retaliation against the Uruguayan government, as part of the lawsuit brought by Philip Morris International against the government.

The workers are caught in the middle of what is essentially a company ploy. In any case, the company is not planning to pull out of Uruguay. It will maintain its presence in the country with cigarettes imported from Argentina.

-Have you been able to meet with management?

-We had a meeting on the 21^st, where they informed us officially that they were closing down the plant, but it was already a done deal.

We met again on Monday, October 24, and at that meeting we told management that in order to honor the collective bargaining agreement, which stipulates a 15-day notice in the event of closure, they needed to reopen the factory for two weeks and at the same time begin a dialogue with the workers.

But they rejected our proposal and responded that they were only willing to reach a financial agreement with respect to severance payments.

-What do they offer in that sense?

-The mandatory amount stipulated by law, calculated according to seniority, plus an additional sum equivalent to six salaries. But that’s just the severance payment that workers are entitled to anyway in the event of wrongful termination, which is precisely what this is: a company-wide wrongful termination.

This means that they’re merely offering what’s stipulated under Uruguay’s applicable laws and labor regulations.

-Are there any other meetings scheduled?

-Yes, we’re having a meeting today (October 27). We’re asking that the factory be reopened and, if it isn’t, we will file a claim for damages in an amount that we haven’t yet calculated.

-How has the government reacted?

-On October 25 we met with Undersecretary of Labor Nelson Loustauneau, who established that the company is willing to comply fully with its legal obligations, which means our situation must be dealt with differently.

For example, out of the 45 unionized workers who were fired, 21 are 50 or older, and there are many who have been working at the plant for over 30 years. The worker with the least seniority has been working in the factory for 8 years. This is not only a mass dismissal; it also creates a very complex and problematic situation for all the laid-off workers.

-What actions are you planning to take?

-We’re requesting a meeting with National Vice President Danilo Astori, and we’re also hoping to meet with President José Mujica.

Besides bringing the situation of the laid-off workers to their attention, we want to set certain high government officials straight, as in statements to the press they celebrated what they think is Philip Morris’ decision to pull out of Uruguay, considering it a victory in their anti-cigarette campaign.

What they need to be aware of is that the multinational corporation is not going to stop selling its products here, and it may even jeopardize the other tobacco company that operates in the country, and which is nationally-owned, by inundating the domestic market with cheaper cigarettes. That would deal a devastating blow to our entire union.

-How has the labor movement reacted?

-The national confederation of workers, PIT-CNT, called on all its affiliates to mobilize in support of the unions in conflict. There are several unions in conflict, but ours is the worst hit because it faces the closure of the factory and a mass layoff. The mobilization will probably be staged on November 3 and may include a general strike. The specifics will be discussed on October 31, at an upcoming meeting of the confederation. 

The issue has also been picked up by the IUF, which is working with other unions in the region to organize a major international campaign against the company’s actions and in support of our struggle. We’ve also received the support of the Confederation of Food Industry Workers’ Federations and Unions (COFESA).

-How long do you plan to occupy the plant?

-Until we find a decent and realistic solution to the conflict, a solution that contemplates the wide range of situations faced by the laid-off workers.