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[BUSINESS] · Argentina · 2 sources

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Comodoro Rivadavia Municipality and Patagonia Argentina dispute wage payments

The Municipality of Comodoro Rivadavia and the company Patagonia Argentina S.R.L. are in a dispute regarding the payment of wages to workers following the conclusion of the company's service. The Municipality stated that the responsibility to pay salaries lies solely with Patagonia Argentina as the employer. However, the local government made an exceptional payment of $1,000 million to the company, intended primarily for salary and social security obligations, as an advance on the final contractual liquidation.

The Municipality also authorized the retention of up to $980 million from the company to safeguard worker wages, noting that these funds cannot be transferred automatically until formal final liquidation documentation is completed. This process must account for services rendered through July 31, 2026, subsidies, and potential penalties.

In response, Patagonia Argentina, through a statement signed by Jorge Moreno, accused the Municipality of failing to meet established deadlines for subsidy advances. The company claimed that under local ordinance, an advance of approximately $2.49 billion should have been paid by August 6. Instead, they received only $1,000 million between August 10 and 11. The company argued that the current financial difficulties in meeting payroll obligations stem from these municipal administrative delays rather than company mismanagement.

Entities

Comodoro Rivadavia Municipality · Grupo MR SRL · Jorge Moreno · Patagonia Argentina S.R.L.