291 layoffs in Salto: the Ministry of Labor responds

by October 7, 2025

The Labor Ministry: support from Orsi and a firm response to labor disputes

The Ministry of Labor has become the epicenter of the labor tensions affecting Uruguay. Under the leadership of Minister Juan Castillo, and with the explicit support of President Yamandú Orsi, the ministry is facing a series of conflicts involving mass layoffs, stalled negotiations, and productive sectors in crisis.

Since the beginning of his term, Orsi has reaffirmed that his institutional support is the Ministry of Labor. This affirmation, far from being symbolic, translates into concrete actions: meetings with unions, monitoring departmental conflicts, and coordination with the Congress of Mayors.

Table of contents

  1. Presidential support for the Ministry of Labor
  2. The conflict in Salto: 291 layoffs and lack of negotiation
  3. The dairy industry: closure in Rivera and job stability
  4. Meatpacking plants: unemployment insurance turnover and precariousness
  5. Institutional guarantee in times of distrust
  6. Conclusion: Can the workplace be restored?

1. Presidential support for the Ministry of Labor

"From the outset, the president has reaffirmed that his support lies in the actions of labor authorities," stated Juan Castillo after a meeting with municipal, dairy, and meatpacking unions. The presence of the union center reinforces the institutional nature of the meeting, which seeks to hear workers' concerns "firsthand."

This support is no small feat. In a context of high labor unrest, having presidential endorsement allows the Ministry to act with greater legitimacy and capacity for intervention.

2. The conflict in Salto: 291 layoffs and lack of negotiation

One of the most critical areas is the department of Salto , where 291 layoffs were recorded in the Municipality. Castillo was blunt: "It ignores a signed collective bargaining agreement, and that's worrying." The Ministry has initiated all legal and political measures to reverse the situation.

Furthermore, he denounced that the Salto departmental government failed to attend the institution's calls for negotiations and failed to respect the negotiation process. "The principle of good faith was ignored above all else," he emphasized.

The ministry sent Dinatra officials, met with members of the board, submitted documents, and convened meetings. However, the local government's refusal to negotiate forced the Ministry to go directly to Salto .

3. The dairy industry: closure in Rivera and job stability

Another open front is the dairy industry. Castillo stated that negotiations are ongoing within the Ministry, "seeking a solution" to several issues. Among them is the planned closure of the Rivera plant.

The discussion revolves around job security, wage stability, and how to simultaneously protect the industry and employment. The Ministry is seeking solutions that do not sacrifice working conditions or the viability of the sector.

4. Refrigerators: unemployment insurance turnover and precariousness

The meatpacking industry presented a worrying picture: between 2,000 and 2,500 unemployment insurance claims each month. "It's difficult for a meatpacking worker to achieve year-round job security," Castillo explained.

This constant turnover undermines income, stability, and collective bargaining. The Ministry recognizes that the lack of consensus and trust between the parties makes conflict resolution difficult.

5. Institutional guarantee in times of distrust

Castillo was clear: "What we're struggling most with is getting the disputing parties to quickly find consensus or build trust." In a climate where one side distrusts the other, the Ministry's role as guarantor becomes essential.

The communication with the president of the Congress of Mayors, Nicolás Olivera, seeks to restore the negotiating environment and provide certainty to the workers.

6. Conclusion: Can the workplace be restored?

The Ministry of Labor, with the support of Orsi, faces a complex task: mediating labor disputes involving layoffs, industrial closures, and structural precariousness. The key is to rebuild trust, restore negotiation opportunities, and ensure that labor rights are not violated.

Can the Ministry of Labor establish itself as a guarantor of stability in a country marked by labor fragmentation?

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