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Tyre Dispute in Argentina Ends with Ministry of Labour Intervention

3 November, 2008

A six-month rubber workers’ dispute in South America, involving 4,000 staff represented by ICEM affiliate Sindicato Unico del Neumático Argentina (SUTNA), ended on 22 October when workers agreed to a mediated contract arrangement. It ended under terms put forth by the country’s Labour Ministry through mandatory conciliation in September and October. 

SUTNA and management representatives of Bridgestone-Firestone, Pirelli, and Argentine-based FATE accepted a salary increase of 28% that was defined by the ministry, plus reinstatement for many of the 214 workers of the three companies who were fired during July industrial actions. Others accepted compensation as terms set in the government-mediated resolve.

The agreement calls for a 15% wage increase backdated to 1 July 2008, and another 13% on 1 December, but based on salaries that were effective in June 2008. As well, an allowance of 1,800 pesos was agreed to be paid in three installments: 1,000 pesos at the signing of the agreement, 400 pesos late in October, and another 400 pesos in March 2009.

The ardent and pitched dispute, dating back to expiration of a prior agreement on 1 April 2008, was marked by a 48-hour strike on 24-25 July, in which the 214 were sacked. When the companies refused to reinstate the workers, an indefinite strike then began on 25 August. That was suspended only when the Labour Ministry declared compulsory conciliation.

The ICEM issued an alert to its affiliates in the rubber sector, asking for support to the union and its 35% wage demands. July and August also saw several trade unions and civil society organisations in Argentina take to the streets to support SUTNA and the rubber workers.

“We thank the ICEM affiliates from around the world that sent messages to SUTNA during this difficult dispute,” said ICEM general Secretary Manfred Warda. “A settlement is now in place and we hope reconciliation and mutual respect become the norm in all three tyre plants.”

Japanese-based Bridgestone-Firestone and Pirelli of Italy operate factories near Buenos Aires, each employing 1,400 rubber workers, while FATE employs 1,200 at a plant in San Fernando.