Fate Workers Unite at Labor Secretariat

The union representing tire industry workers, SUTNA, organized a march outside the Labor Secretariat in Buenos Aires on Wednesday to express their opposition to the possible closure of tire manufacturer Fate. A 24-hour strike is also being conducted. The closure is anticipated to result in the loss of over 900 jobs. The protest commenced at 10:30 a.m., coinciding with discussions among representatives from the Labor Secretariat, Fate, and the union regarding the company’s future and the welfare of its employees. Following the meeting, the Ministry of Human Capital, which encompasses the secretariat, released a statement indicating that “no definitive agreements were reached.” The mandatory conciliation period “has been extended until March 11th.” In front of the labor secretariat, law enforcement executed a security operation aimed at dispersing the demonstration and restoring order to the streets. This involved the use of pepper spray and water cannons, in accordance with the government’s anti-protest measures that prohibit roadblocks. “They are cracking down [on protesters] on a pedestrian area,” stated Myriam Bregman during an interview. Polo Obrero leader Eduardo Belliboni stated that the Buenos Aires City government had permitted them to protest in that area, provided they did not obstruct the bus lane. “They encircled us in order to subsequently assault us. “We left the bus lane clear,” he denounced. The Ministry of Human Capital reported that the protest “resulted in clashes and confrontations between some demonstrators and security forces, leading to a police operation and resulting in one officer being injured.”

The announcement of Fate’s closure and the layoff of all its employees occurred 15 days ago; however, the decision has been placed on hold following the labor secretariat’s declaration of a “mandatory conciliation period.” This stipulates that any decision is temporarily suspended, requiring the involved parties to engage in negotiations to resolve the matter. The conciliation period concluded on Wednesday. The labor secretariat possesses the authority to extend it for an additional five days. The union is insisting on the reopening of the tire factory and the safeguarding of workers’ jobs through alternatives such as selling the company or potentially having the Argentine state assume control. SUTNA has organized a march to the labor secretariat, asserting that “businesspeople cannot evade their responsibilities.” The union garnered backing from various other unions, notably the General Confederation of Labor (CGT, by its Spanish initials) and the two factions of the Argentine Workers’ Central (CTA de los Trabajadores and CTA Autónoma). “Defending Argentine labor is defending our families,” they stated. “Fate will not shut down!”

A 24-hour strike commenced on Wednesday at 6 a.m. at Pirelli and Bridgestone, the two major tire manufacturers in Argentina. SUTNA has lodged a complaint with the judiciary, asserting that Fate breached an agreement established last year, which stipulated that the company would be exempt from making contributions in return for refraining from layoffs until July 2026. The firm’s decision to close was labeled “a scam.” The union noted in their complaint “We must take into account that Fate did not declare bankruptcy nor start insolvency proceedings; they stated they simply made a commercial decision,” implying that the closure is not attributable to financial difficulties. The union proposed that the state might temporarily assume control of the company to ensure its continued operation. It has been asserted that Fate is the sole manufacturer of tires for trucks and buses, and that the cessation of operations could precipitate a supply crisis. In a speech delivered on March 1 to inaugurate the legislative year in Congress, Milei directed pointed criticism at Javier Madanes Quintanilla, the owner of Fate and head of the aluminium manufacturing firm Aluar, alongside Paolo Rocca, the leader of the steel company Techint.

Milei referred to them with mocking nicknames, deliberately avoiding direct identification, while accusing them of pricing their products excessively and dismissing their critiques regarding the liberalization of imports. He also stated that Fate was employing the layoff of 920 employees as a form of “extortion” to compel the government to endorse antidumping measures that restrict foreign imports, particularly from China. “Do they believe it is acceptable to pay three or four times more for tires in return for the displacement of 920 workers while negotiations regarding aluminum protections are ongoing?” the president stated. Subsequent to the address, the Argentine Industrial Union and the Argentine Business Association released statements advocating for the respect of business leaders. UIA stated that honoring those who “produce, invest and create jobs in the country” is “a basic need for development.” AEA emphasized that “to move forward towards a sustained development, it is indispensable to promote a constructive and respectful dialogue between the government and the private sector.”