Argentina orders grains strike suspension

Argentina's government ordered union leaders o n this week to suspend a planned pay strike by oilseed-crushing workers in the grains export hub of Rosario and hold talks with bosses, an industry source said.

High inflation has made labor protests more frequent in the South American country, the world's No. 1 exporter of soyoil and soymeal and the third-biggest supplier of uncrushed soybeans. "With regards to the oil-crushing union's compulsory conciliation order ... the Labor Ministry agreed to bring it forward so it takes effect at midnight (0300 GMT on Wednesday)," said Guillermo Wade, an official from the CAPYM port industry group in Rosario.

Union leader Pablo Reguera said he had not yet received the Labor Ministry's order but that his members would respect the government's decision.

Grain export terminals and vast soy-processing plants clustered on the Parana River around the city of Rosario account for about 80 percent of the country's grains shipments. Argentine farmers are currently bringing in the last of this season's corn and soybeans and any prolonged walkout in Rosario could fan high global prices.

However, President Cristina Fernandez has taken a tougher line on strikes in the sector -- an important source of the foreign currency she needs to pay debt -- and has repeatedly instructed the Labor Ministry to order compulsory conciliation. That forces strikers to go back to work while union leaders and bosses negotiate, normally for 15 days initially. If no deal is reached at the end of the two weeks, the government can order an extension.