US urges Mexico to review allegations of labour rights violation at Pirelli plant

Washington – US trade authorities have called on Mexico to investigate alleged labour rights violations at Pirelli’s tire plant in Silao, Guanajuato.

In an 18 Dec statement, US trade representative Katherine Tai requested a dispute panel under the ‘rapid response labour mechanism’ – a system for addressing urgent labour issues between the US, Canada, and Mexico.

The case centres on claims that Pirelli has failed to uphold sector-wide labour rights for employees at its Silao facility. (ERJ story)

In August 2024, the US formally asked Mexico to investigate these allegations, which were dismissed by Mexican authorities following a 45-day review that found "no denial of rights at the facility." 

“By contrast," said the 18 Dec statement, the US "considers the denial of rights to be ongoing and therefore is requesting establishment of a panel to review the situation.” 

Under Mexican law, workers in the tire sector are entitled to wages and benefits as set in the sector-wide agreement, as well as to protection of their rights to organise and bargain collectively.

“In this case, we are moving to the dispute settlement panel process and will continue dialogue with the government of Mexico," said deputy undersecretary for international labour affairs Thea Lee.

This, she said, will ensure that Pirelli workers are "fairly compensated consistent with the sector-wide agreement and enjoy the union protections owed to them."

Operational since 2012, the Pirelli plant has a capacity to produce 8.5 million passenger car tires annually.