Financial crisis hits Uruguayan leather sector
The Uruguayan Union of Workers in the Tanning Industry (UOC) is calling its members together to discuss the impact of the international financial crisis on the local leather industry.
UOC leader, Juan Camejo, has voiced concerns about the 1,800 workers that are currently on unemployment benefit and another 600 that have recently been made redundant. “Before the beginning of the crisis, the Uruguayan leather industry employed between 4,500 to 5,000 workers permanently,” said Mr Camejo.
Members of the meeting will look for ways of saving jobs as many companies are considering introducing compulsory holidays or job cuts until the market has recovered. According to the union, most of the leather produced locally is exported to companies producing car and automotive upholstery. However, production in these sectors has dropped dramatically since the credit crunch began. UOC is looking to implement a strategy whereby local leather exporters shift their focus from the car and aircraft upholstery sectors and start producing various types of leather geared toward other end uses.
