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Montevideo, December 4th 2022 - 22:16 UTC

 

 

Argentine tires: no solution in sight

Tuesday, September 27th 2022 - 09:56 UTC
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Carmakers are halting production and food supply may soon be affected Carmakers are halting production and food supply may soon be affected

Argentine tire manufacturers Monday told the government that “the rights of the companies” were being violated as labor unions seized their plants and prevented work from continuing.

The businessmen demanded measures to reach an agreement in the bargaining negotiation with the union. Earlier, the secretary of

SUTNA union leader Alejandro Crespo warned that “the measures of force will continue,” which has resulted in no domestic production of tires. As a consequence of this decision, the retail price of the little stock still available has skyrocketed, smuggling has been reported to be on the rise and car manufacturers have halted production until further notice, in the absence of such a vital input, placing thousands of jobs at risk.

Tire manufacturing companies are adding pressure to the negotiations taking place at the Labor Ministry. The heads of Pirelli, Fate, and Bridgestone warned the authorities that it “is impossible to continue with negotiations while the rights of the companies are being violated.”

Ford froze the production of its Ranger pick-up truck, while Toyota will put tires of other models on 150 units and will move them to a yard to avoid suspending production.

The three local tire manufacturers argued that ”events of extreme gravity and violence have been developing in the operating conditions in the entire tire industry, having reached the extreme of having paralyzed the productive operations in all the plants (Bridgestone, Fate, and Pirelli) either by repeated threats and intimidations to the personnel and situations of illegitimate blockades.“

According to the companies, the workers are ”violating the right to work and free movement“ and insisted that ”under this context, no type of negotiation is possible“.

In order to ”recover the full operation of the plants and levels of industrial productivity compatible with international markets“, ”social peace and the safety of the workers and the assets owned by the companies“ must be guaranteed, the companies argued.

”It is impossible to continue with the labor union talks while the rights of the companies and the workers are constantly being violated“, stated the joint letter requesting the Labor Ministry ”to take prompt intervention to continue this negotiation process within a minimum and indispensable legal framework corresponding to the rule of law.”

The lack of tires will soon affect rural production and therefore food supply. The Argentine Rural Society (SRA) expressed its “concern for the lack of supplies, including tires” and denounced that “due to union extortion, the situation seems to worsen.”

“We ask the Government to intercede to provide a definitive solution. Agricultural machinery and transport are strategic areas within the production and commercialization of the sector, its normal operation allows economic development and generation of foreign currency,” the SRA added on Twitter, while also pointing out “the increased risk to the road safety of all Argentines.”

Categories: Economy, Politics, Argentina.
Tags: SUTNA.

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