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Pirelli Will Halt Merlo Production for a Week and End Weekend Shifts

The company says the changes respond to a sharp drop in sales and have triggered a government labor hearing to review the move.

Overview

  • Pirelli confirmed a paid shutdown of its Merlo plant from June 15 to June 21, telling workers they will receive full salaries during the seven-day stop.
  • From July the factory will switch to a Monday–Friday schedule that removes Saturday and Sunday shifts and the double-pay overtime those days provided.
  • Workers and the Sindicato Único de Trabajadores del Neumático (SUTNA) say the change was not collectively negotiated, filed complaints alleging the company sought individual signings, and prompted the Secretaría de Trabajo to call an urgent hearing on Thursday.
  • Company officials and multiple reports link the cuts to sustained falls in demand from automakers—including production cuts at StellantisEl Palomar plant—plus competition from lower-priced imports and the recent closure of Fate’s factory.
  • The Merlo plant has seen hundreds of job cuts since 2023 and now employs roughly 650–700 people, producing about 3,500–4,000 tires a day compared with peak output near 16,000–18,000, raising concern that the sector could face further contractions and local job losses.