Chilean salmon processing plant razed by fire to lay off workers

Since the plant closure has been caused by force majeure, the 50/50 owners, Blumar and Multi X, have decided to compensate the workers "beyond what the law establishes."
Part of the workers of Entrevientos - the salmon processing plant razed by fire in Magallanes, Chile - pose in front of the remains of the burned building. Although the layoffs, the company will compensate them beyond what is established by law.

Part of the workers of Entrevientos - the salmon processing plant razed by fire in Magallanes, Chile - pose in front of the remains of the burned building. Although the layoffs, the company will compensate them beyond what is established by law.

Photo: Entrevientos.

Five days after a fire completely razed Entrevientos plant - the most modern salmon processing facility in the Magallanes Region, Chile, owned equally by the well-known Chilean salmon companies Blumar and Multi X -, the company has announced "the impossibility of maintaining labor continuity with those currently working there."

However, the company - which made the decision after meeting with workers and unions - has designed a plan to ensure financial stability for employees and their families by defining voluntary severance payments.

"We have agreed to a voluntary severance payment equivalent to the total years of service," explained Cristián Swett, Entrevientos Chairman of the Board. "It is important to highlight that, given the cause of force majeure invoked in this case, the company's partners, the salmon companies Blumar and Multi X, make the decision to provide economic stability beyond what the law establishes."

"Entrevientos' partners are making this effort as a sign of gratitude and respect for those who worked at the plant due to the impossibility of creating jobs," he added. All employees will be dismissed from the company for the reason contemplated in Article 159 number 6 of the Labor Code in Chile, which indicates fortuitous cause or force majeure.

Partners want to rebuild the plant

Entrevientos processing plant began operations in 2020 as part of a joint venture between Multi X and Blumar. Its construction involved an investment of around USD 70 million (EUR 65 million), and it was equipped with automated processes, and state-of-the-art technology and machinery to meet the highest quality and safety standards.

"The fire last Sunday, February 11, was a very hard blow both for the company and for the region. Entrevientos S.A. was born as a very special project that meant processing in Magallanes the salmon grown in the region, generating more employment and development opportunities for the area and its inhabitants," recalled Cristián Swett. "We intend to build the plant again and hopefully the workers who are here with us today will want to be part of the company again," he then announced.

Finally, Entrevientos Chairman of the Board thanked the company's employees, union leaders, and regional and community authorities for their willingness to dialogue and search for solutions after the fire.

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