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Montevideo, November 29th 2022 - 02:19 UTC

 

 

Argentine tire manufacturers back to work

Monday, October 3rd 2022 - 09:47 UTC
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Massa was to turn local companies into emergency importers to buy abroad what was in no supply from local manufacturers and the conflict was solved Massa was to turn local companies into emergency importers to buy abroad what was in no supply from local manufacturers and the conflict was solved

An agreement has been reached between Argentina's Single Union of Argentine Tire Workers (SUTNA) and the three companies operating in the country, thus bringing the five-month conflict that left the country virtually tireless to an end.

Production may now resume after negotiations since Thursday afternoon ended up in an agreement for a salary increase to counter the country's inflation of almost 70%. When Bridgestone, Fate, and Pirelli decided to cut production, automakers too had to stop production as they ran out of tires for new units.

Labor Minister Claudio Moroni and the SUTNA leaders reach an agreement that was endorsed by the employers, it was announced between late Friday and early Saturday by local media.

“Every month until July, inflation is guaranteed to be covered, whatever it may be,” SUTNA leader Alejandro Crespo explained.

As negotiations stalled, the workers began to blockade the tire production plants until a total stoppage in the production of tires, which ended up causing shortages in the market and, consequently, a sharp increase in prices.

Last week, Toyota and Ford ordered the closure of their plants until an agreement was reached, while, Renault, Fiat, Volkswagen, and Peugeot were evaluating similar measures if the situation went on since they had tires in stock for only a few more days.

Amid the tension caused by the conflict, Economy Superminister Sergio Massa met with representatives of the automotive chain and guaranteed them that if the problem was not solved soon enough, the Government would convert the companies into “emergency importers” to purchase abroad “everything they need.”

Categories: Economy, Investments, Argentina.

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