Overview
- Pirelli and the SUTNA union agreed that Merlo will stop all three shifts from Sunday, May 24 and resume Tuesday, May 26 while roughly 650 workers will receive full pay for the pause.
- Company and union statements tie the move to lower tire demand after Stellantis cut El Palomar from two shifts to one and reduced exports to Brazil.
- The Merlo pause follows recent shocks in the sector, including FATE's plant closure that cost about 920 jobs and roughly 700 job losses at Pirelli since 2023.
- Imports now supply about 75% of tires sold in Argentina, mostly from China, a surge that has depressed local prices and production volumes from highs in the 2010s.
- SUTNA has authorized selling or mortgaging union properties to keep its health plan running, a sign that the industry contraction is already stretching worker services and could presage deeper restructuring.