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Original Articles

Contracts, control and contestation: The harvest of lemons for export

Pages 161-188 | Published online: 24 Jan 2007
 

Abstract

This article analyses the labour process of an export industry in Argentina that supplies fresh lemons to an increasingly demanding European market. We examine the structural tensions as well as formal and informal protests to managerial strategies used to circumvent state controls, the power of unions and the cost of harvesters' wages. We identify the technocratic counterstrategies used by producers concerned about product quality and monitoring costs and how these strategies reduce the impact of informal acts of resistance and gain the cooperation of workers. We link these strategies to specific economic and political conditions and to how actors perceive conditions and responses.

Notes

1 It is important to note that the system of subcontracting differs from case to case. Some systems are more exploitative than others not only because of the contractual terms between producers and labour contractors but because of the failure of the state to regulate the practice and of unions to curb it. As Vandeman [Vandeman et al., Citation1991 and Brass Citation2004 point out, it is a pervasive strategy in capitalist agriculture and can be brutally exploitative but the issues can be more complex and subtle [Kritzinger et al., Citation2004. In section two and four we outline the role of contractors, their limited power and controlling strategies used.

2 Tucumán is a small province in the north-central region of Argentina. Citrus groves were initially located just south of the provincial capital. Presently, they stretch from north to south, along the central valley and slopes of the province. Most of our interviews with producers, contractors and labourers were carried out in the northern and central region, and to a smaller extent in the southern region.

3 In 2001, these four vertically integrated firms handled 57 per cent of all of the fresh fruit exported and processed 88 per cent of the industrialised fruit. These firms purchased and harvested some of the fruit from independent farmers.

4 According to the 1995 census 48 per cent of the land was owned by the vertically integrated firms and farmers with more than 100 hectares in land (the size which is considered economically viable). The rest of the land was owned by 55 farmers with at least 50 hectares, 223 farmers with 10–50 hectares and 189 farmers with less than that [Batista and Natera Rivas, Citation1998, Citation1999. These properties are located within a region that runs through the centre of the province of Tucumán.

5 Bruised fruit and fruit showing signs of oleocelosis will not be accepted by packers if the damaged is noticed. If the damaged becomes apparent at the port of destination the fruit is thrown out and sometimes the exporter is fined. Exporters known to send fruit of uncertain quality do not get profitable contracts.

6 Seasonal labourers are considered to be discontinuous permanent labourers who have a right to be recalled the next season and to gain seniority. They are also supposed to receive retirement benefits, health coverage, child benefits, pro-rata vacation pay and an annual bonus, while employed. The costs of these benefits are covered by a 17 per cent deduction from the harvester's paycheck and by the employer's contributions, which in 1995 amounted to 33 per cent. The paycheck's deduction has since been reduced to 15.8 per cent and employer's contribution to 20 per cent. [ATC, Citation1996: 15; Bour, Citation1997

7 These wage increases became permanent and usually become incorporated in collective agreements. This instrument was also used after 2001 to redress the consequence of the devaluation of the currency.

8 See sections four and five for a discussion of subcontracting relations.

9 Rau Citation2004 indicates a similar stand of UATRE in another northern Argentina province where they represented yerba mate labourers. See Alfaro Citation1999, Citation2000 for an overview of unions in the agricultural setting.

10 During the 1990s, when a labourer shifted employment, he had to reregister in the labour office. It is a time-consuming and expensive procedure.

11 Only fruit from small aging orchards or from orchards negatively affected by climatic conditions are harvested by hand and sold directly to a factory. During the harvest of 2001, only two out of 19 crews in one of the largest firms did harvest by hand during a fortnight. From an early report we know that in 1978 only 37 per cent of producers sold their harvest to a factory [INTA, Citation1980 and that most of the fruit came from orchards smaller than 50 hectares. The 1995 census does not update that information. But the percentage is likely to have been smaller since many of those farms have disappeared [Batista and Natera Rivas, Citation1998.

12 Vertically integrated firms simply transfer the fruit to their own plants and though they incur a financial loss, it is lower than for the independent packers who then have to sell the discarded fruit in the open market. In general, packers pass on a share of the cost of fruit discard to farmers who end up having to absorb the consequences of careless harvesting.

13 The term ‘labour contractors’ is used to include service firms as well as small entrepreneurs who service small and medium farmers, unless the distinction is of relevance. All contractors have to be registered and must comply with the terms of the collective agreement and labour legislation. However, many of the small entrepreneurs were not registered and eluded oversight. It is unlikely that the small entrepreneurs managed more than one quarter of all labourers. None of the contractors offered housing or advanced monies. They did not hire minors or use physically coercive practices. Labourers' complaints about some exploitative practices of contractors are discussed in section 6.

14 Data from one large firm indicates that between 1998 and 2001 the cost of harvesting one ton of fruit dropped from US$35 to US$22.

15 In 2001, only one of the large firms assured labourers that regardless of the amount of fruit available for picking, they would be paid a minimum amount equivalent to the negotiated basic day-wage. A field supervisor from the firm would estimate the amount of fruit they could be expected to harvest and they would earn a day wage if they reached that estimate, or more, at the established piece rate, if they surpassed the estimate.

16 In 2001, a married man with two children had to earn at least US$210 not to fall below the line of poverty. If his employer had registered him in the Labour Office he qualified to receive US$20 per child per fortnight, but only while employed. A single person needed to earn only US$77 per fortnight to live above the poverty line. Government aid to unemployed families is meagre and does not extend to all needy families.

17 Export regulations about the use of agrochemicals apply to all of these firms; hence it is unlikely that occupational illness can account for the difference.

18 A similar difference in the rate of absenteeism was confirmed for Firm 1 and another large firm for the 2000 harvest.

19 Young, unmarried men are the ones more likely to miss the bus and shift from crew to crew hoping to earn more or in response to being disciplined. Two thirds of them are not registered in the labour office, hence they have less to lose and little to gain from most fringe benefits. There is no information about the age of harvesters per crew or service firm. It might very well be that Firm 10 had a higher proportion of young unregistered men than Firm 1. But it is important to keep in mind that some firms were willing to tolerate shifting crews, while bitterly complaining about it. Other firms, instead, pressured their contractors to register all of their harvesters and select those who demonstrated commitment and responsibility.

20 More stringent quality controls in the old harvesting system required one third more supervisors than under the new system.

21 In Firm 1 where this harvesting system is used, the overall rate of damaged fruit had been reduced by five per cent. When evaluated at the orchards the percentage of damaged fruit in 2001 ranged from seven to 13 per cent, with two crews out of 12 having a fortnight average as high as 20 per cent. For comparative purposes, it is important to keep in mind that transport will add another 10 per cent of damage and still more damaged fruit will be noticed during final selection. A firm using a traditional harvesting system was able to replicate this percentage but only by slowing the pace of harvesters who then earned much less than harvesters in Firm 1.

Additional information

Notes on contributors

Susana Aparicio

This article is part of a wider study about the growth and the transformation of the lemon industry in Tucumán, Argentina. María Inés Alfaro accompanied Ortiz in her first visit to Tucumán and wrote a report on the organization and role of the labour union. The research was supported by the Wenner Gren Foundation for Anthropological Research, the programme of Ciencias Técnica of the University of Buenos Aires and the Agencia Nacional de Promoción Científica y Técnica, Argentina. The authors would like to express their thanks to Ehud Koch for his many helpful comments.

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