Buenos Aires deputies reject tire makers’ cutback measures

Buenos Aires – Lawmakers and workers in Argentina have rejected moves by local tire makers to make large-scale job cuts under the country's financial ‘crisis prevention process’.

In a 10 July statement authored by deputy Guillermo Kane, Buenos Aires chamber of deputies rejected cutback measures, it said were being taken 'by FATE, Bridgestone, and Pirelli.'

The lower house of legislature for Buenos Aires province also demanded “the immediate reinstatement of all dismissed workers” without providing further details.

Trade union Sunta staged a large protest in Buenos Aires on 25 July against “layoffs and all attacks on workers,” particularly by Bridgestone and local manufacturer FATE.

According to the union, Bridgestone ‘locked out’ workers under the ‘crisis preventative process’, approved by the national government earlier this month.

The procedure is a legal framework in Argentina allowing companies increased flexibility to manage 'severe financial difficulties that could lead to mass layoffs or closure.'

At a labour hearing session 25 July, Sunta stated that Bridgestone had suspended production for a week in mid-July, putting all staff on paid leave.

According to the union, the “lockout” ended 21 July, but 452 workers were suspended on resumption of activities “without just cause.”

Separately, Sunta said that in May, local tire maker Fate also laid off 97 workers before applying for support under the 'preventive crisis procedure', which was granted 1 July.

Sunta has not provided any details about Pirelli taking similar measures in the country.

Bridgestone’s plant in Buenos Aires employs over 1,300 people and has capacity to produce 13,700 units/day of passenger car, light truck, commercial, agriculture and earthmover tires.

Fate’s facility in San Fernando employs over 1,500 people and has a nameplate capacity of 16,900 units/day of passenger car, light truck, commercial, agriculture and earthmover tires.

Pirelli's plant in Merlo has the capacity to produce 4 million units per annum of passenger car and light truck tires.

ERJ has requested comment from the tire manufacturers involved.