The Great Dairy Debacle: A Critical Look at Coleme’s Cost-Cutting Measures
Posted on November 6
Well, well, well, gather ‘round, my friends! It seems the Melo Dairy Cooperative, or Coleme for those in the know, is in a bit of a pickle. Fourteen workers have been sent packing to the unemployment queue, all in the name of “reducing costs.” Yes, because what’s better than a side of financial struggles with your morning milk?
Now, according to the statement from the cooperative’s top cheese-mongers, Boris Revello and Baby Cardozo (seriously, is he a treasury whiz or just a child with a knack for accounting?), this is NOT about the “debts owed by the Municipality.” No, no, no! It’s strictly business, folks! Right, because nothing screams “business as usual” like tossing your employees into the unemployment abyss while claiming it’s all due to corporate strategy and not, you know, actual financial mismanagement.
Enter the Federation of Dairy Industry Workers (FTIL) – think of them as the knights in shining armor for the dairy sector, armed with collective bargaining agreements and the determination of a bull in a china shop. They met with Mario Arizti from the Ministry of Labor, and oh boy, did they have a few things to say! According to their statement, Coleme has pulled a classic “anti-union” move by sending workers off to unemployment without even a courtesy email. What happened to the days of good old-fashioned communication? You know, “Hey, sorry for the inconvenience, but we’re having a bit of cash flow trouble. Care for some unemployment benefits?”
FTIL’s leader, Enrique Méndez, chimed in with an exciting tidbit: Coleme has been on a rollercoaster ride of poor business management since 2018. Who doesn’t love a good thrill ride, especially when it ends with your job being cut? To top it off, they’ve had their “fair share” of pay cuts and unemployment measures already. Is there a medal for enduring workplace hardship? Because these workers might be in line for one.
When the Cream Rises—and Falls
The icing on this particularly sad cake? Of the fourteen workers being shoved into the unemployment line, twelve are union members, including the very president and general secretary! Now, tell me, is that a coincidence or just a blatant “let’s take out the competition” stratagem?
Méndez elaborated that instead of implementing a sensible collective bargaining space for dialogue (you know, what any reasonable organization would do), Coleme has opted for chopping jobs like they’re some overripe cheese wheel. Honestly, if you’re going to ruin lives, at least have the decency to do it in a civilized manner.
And here’s the kicker: Coleme has been benefiting from public funds through the Dairy Industry Reconversion Fund and has the audacity to ignore job preservation laws while they’re at it. I mean, what’s next? Offering milkshakes to set up a charitable fund for unrelated business interests?
The FTIL is pressing for real negotiations, and if they don’t get the attention they deserve, we could be looking at a very lively general assembly with potential for strike action. Get ready, folks; the dairy industry’s about to get spicier than a jalapeño in a cheesecake!
In conclusion, unless Coleme pulls its business up from its bootstraps (or at the very least, starts opening a dialogue), we’re in for a rough patch that might turn this whole dairy drama into a milky mess. With union leaders asserting their demands, we’ve got ourselves a front-row seat to one of the most entertaining business fiascos I’ve seen, and I can’t wait to see how this curdles!
Until next time, keep your milk cool, and your business ethics cooler!
Posted on November 6
The Melo Dairy Cooperative (Coleme) recently announced the difficult decision to place 14 workers on unemployment insurance, a step taken as part of a wider action plan intended to mitigate operational costs. The announcement was officially recorded in a statement signed by Boris Revello, the president, and Baby Cardozo, the treasurer of the cooperative. The cooperative emphasized in its communication, published by Melo’s Voice, that this measure is unrelated to the financial obligations currently owed by the Municipality of Cerro Largo to Coleme. The statement also noted, “Although there are arrears in the payment of milk by the Municipality, they have been regularized in recent days.” It expressed regret over the union’s actions, suggesting an inappropriate connection between genuine business operations and unrelated political matters.
This Tuesday, the Federation of Dairy Industry Workers (FTIL) convened a crucial meeting with Mario Arizti, the head of the Ministry of Labor and Social Security (MTSS), to discuss the troubling situation affecting Coleme employees. On Monday, the FTIL officially declared a state of conflict, alleging that Coleme and the Chamber of the Dairy Industry of Uruguay (CILU) breached the “conflict prevention and resolution” clause by sending workers to unemployment insurance without notice, characterizing this move as clearly anti-union in nature. “The FTIL has proposed alternative solutions that align with the company’s claimed needs, aiming to protect each worker’s employment and prevent them from being forced out onto unemployment insurance,” the federation stated.
The FTIL declared its plenary session “in permanent session” to ensure continued attention to the issue and organized an upcoming meeting for Friday at 11:00 at the MTSS. “If no progress is made regarding the proposals presented, it has been resolved to convene a general assembly of the FTIL,” the text stresses.
The FTIL also committed to seeking meetings with a variety of organizations, including the MTSS, the National Milk Institute, the Regulatory Commission of the Dairy Industry Reconversion Fund, the National Institute of Cooperatives, parliamentary labor committees, and local authorities from the Municipality and Cerro Largo Departmental Board.
Anti-union measure because it includes 12 members of the union and its president and general secretary
FTIL leader Enrique Méndez revealed to the daily that the current struggles facing Coleme have stemmed from persistent operational issues since 2018, attributing these to ineffective business management practices. “The union has had to bear the burden of this situation repeatedly. Throughout these past years, we have witnessed several reductions from the Salary Council and have undergone various unemployment insurance processes, which have led to significant economic losses for the workers involved,” he stated.
Méndez highlighted that a mere three weeks ago, Coleme underwent a leadership change, and during a session at the MTSS, the cooperative’s president assured that there were no pressing difficulties that warranted such drastic measures.
The FTIL views the recent transfers to unemployment insurance as an overtly anti-union tactic, given that “of the five leaders affected, four, which includes the president and secretaries of the union,” have been directly impacted. “Of the 14 employees sent to unemployment insurance, 12 were union members,” he added.
Méndez insisted that Coleme failed to utilize any avenues for collective bargaining or open dialogue, which he argued are essential for avoiding escalatory conflicts. “The situation at Coleme calls for cooperative decision-making rather than actions that create strife,” he emphasized.
Moreover, Méndez noted that Coleme is among the recipients of funding from the Dairy Industry Reconversion Fund, which has been allocated public resources and has a grace period of 36 months before starting its repayment. Alarmingly, he indicated that approximately 50% of the fund is unaccounted for, stating that “the law governing the fund mandates stringent attention to employment matters.”
“In this scenario, the focus on employment has been completely disregarded, and the decision to reduce the workforce by a third is unjust. We proposed adjusting the work week, albeit with salary reductions, as an alternative, yet the company has not responded satisfactorily,” he lamented.
On Tuesday, Méndez communicated with Arizti, urging the establishment of a “real negotiation” platform that acknowledges workers’ proposals. He warned that if no progress is made before Friday, the Salary Council will convene to potentially set a date for a 24-hour strike in the industry, likely to take place next week.
**Interview with Enrique Méndez, Leader of the Federation of Dairy Industry Workers (FTIL)**
**Editor:** Thank you for joining us, Enrique. The decision by Coleme to let go of 14 workers has certainly stirred up quite a controversy. Can you explain how the FTIL plans to respond to this situation?
**Enrique Méndez:** Thank you for having me. This situation is incredibly concerning, not just for the workers who have been laid off but for the dairy industry as a whole. Our first action was to meet with Mario Arizti from the Ministry of Labor to discuss the violation of our collective bargaining agreements. We believe that Coleme’s move to place workers on unemployment without notice is not just irresponsible but an anti-union tactic aimed at weakening our position.
**Editor:** You mentioned that this decision appears to disproportionately affect union members, including your president and general secretary. What implications does this have for union solidarity?
**Enrique Méndez:** Absolutely, it’s alarming. Out of the 14 workers let go, 12 are union members. This raises serious questions about the intentions behind Coleme’s actions. It seems like they’re trying to dismantle our leadership to silence voices that advocate for workers’ rights. This kind of tactic only strengthens our resolve. We are more united than ever, and we won’t stand by while our members are treated unfairly.
**Editor:** In light of these decisions attributed to poor business management, what are the FTIL’s proposals to help Coleme navigate these financial challenges while preserving jobs?
**Enrique Méndez:** We’ve put forward several alternative solutions that align with the company’s claims of needing to cut costs. We can implement safer operational practices, increase efficiency without layoffs, and explore community partnerships to stabilize finances. What we seek is a dialogue—constructive negotiations that consider the welfare of all employees.
**Editor:** The cooperative argues that this decision is unrelated to their debts owed by the municipality, stating that financial issues have recently been regularized. How do you respond to that?
**Enrique Méndez:** We’ve seen this pattern of poor management for years, and it’s difficult to separate these claims from the larger context of financial mismanagement. The fact that Coleme has been receiving support from public funds while ignoring job preservation laws is not just hypocritical; it’s unjust. We believe that if they can receive public assistance, they should also demonstrate a commitment to safeguarding jobs.
**Editor:** Lastly, what steps is the FTIL prepared to take if Coleme and the Ministry of Labor fail to engage in meaningful negotiations?
**Enrique Méndez:** If our proposals are ignored, we will escalate our actions. We are considering a general assembly where we can discuss strike action. We need to make it clear that workers deserve respect and fair treatment, and we will advocate for that through every avenue available.
**Editor:** Thank you for your insights, Enrique. It seems that the situation is developing swiftly, and we’ll be watching closely to see how it unfolds.
**Enrique Méndez:** Thank you, and I appreciate the opportunity to voice our concerns. Let’s hope for a resolution that prioritizes the welfare of the workers involved.
