Uruguay: FNC brewery reopens after being deemed uncompetitive

The FNC brewery in Minas in the province of Lavalleja reopened Monday, August 12 with some 30 workers to do some cleaning and maintenance before the others return next week, thus closing a long-standing conflict that threatened the survival of one of the plants belonging to Uruguay's most iconic beer producers, MercoPress reported.

The plant had been closed since July when the company shut it down citing competitiveness problems in the beer market. The announcement triggered negotiations involving high-level government authorities to reach a solution that finally reversed the measure.

However, union leader Andrés Arellano explained that some workers were indeed laid off while others remained on strike. Production and canning is expected to start next month with a new system.

The brewery was to be reopened last week but negotiations were stalled when FNC questioned the union's list of those who were due to show up on reopening day, which had been drafted by the labor grouping based on seniority. Five of the names on that list were written off given their personal and professional records, it was explained. A new understanding was eventually reached regarding these workers, it was also explained.

FNC said it was closing the plant due to competitiveness problems consisting mainly of low productivity and high production costs compared to neighboring countries amid increasing “fiscal pressure.”

The national government stepped in and brokered the three-way negotiations leading to Monday's reopening. The agreement included a cap on beer imports which may henceforth not exceed 30% of the Minas brewery output.

Fábricas Nacionales de Cerveza (FNC) was created in 1933 as a result of the merger of various companies, some of them dating back to the mid-1860s.

It currently produces the beer brands Pilsen (created in 1866), Norteña (1947), and Zillertal (1997), in addition to its malt business. In 2000, FNC was bought over by the Brazilian company AmBev.