Labor disputes delay reopening of Uruguay's only refinery

Friday, September 29, 2017

Uruguay's only oil refinery has been dormant for three months longer than necessary after a scheduled four-month shutdown for maintenance, state oil company Ancap said.

The La Teja complex is inactive due to multiple disputes between Ancap's labor union, known as Fancap, and management.

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The union opposes the privatization of health care coverage for workers, and is calling for an increase to the minimum number of workers required to operate the refinery, Ancap said in a statement.

Ancap maintains that the amount of workers deemed necessary by the board to operate La Teja is in line with global standards.

Ancap said that due to the refinery's closure, it has been forced import refined products from abroad, which are more expensive than fuels produced domestically, especially following recent weather events in the US and the Caribbean.