“The Industry-wide Labor Agreement for the Rubber Industry is legally terminated” said labor lawyer Ricardo Martínez Rojas and, therefore, it is not possible to seek its application in cases of companies such as Pirelli, as the Federal Labor Law states that “if an agreement is not reviewed or extended by operation of law, its validity ends.”
This took place after the Mexican Workers Union League (LSOM) requested the intervention of the United States government to activate the Rapid Response Labor Mechanism (MLRR) because workers were fired for conducting union activities, in addition to the fact that the industry-wide labor agreement, which would have had greater benefits, was ceased to be applied.
However, Martínez Rojas, partner at the D&M Firm, said that “the Industry-wide Labor Agreement for the Industry for the Transformation of Rubber into Manufactured Products is no longer valid, ended by Operation of Law, given that at the end of the validity of its latest extension on February 12, 2019 nobody requested a review, there is no further extension, and its validity has ended.”
In is worth noting that it was reviewed for the last time on January 12, 2015, and it was expressly agreed that its term would be from February 13, 2015 to February 12, 2017. What has been informed by the workers is that the Industry-wide Labor Agreement of the Rubber Industry is mandatory for companies in which rubber is transformed into manufactured products, which includes tire companies. In has 150 articles that establish economic benefits, such as the payment of 44 days, a vacation bonus equivalent to 25 and up to 31 days of base salary.
Labor complaint in progress
This last July 22, Pirelli workers affiliated to the Mexican Workers Union League (LSOM), supported by US organizations such as the American Federation of Labor and Congress of Industrial Organization (AFL-CIO), United Steelworkers (USW) and the International Lawyers Assisting Workers (ILAW) Network filed a complaint due to the alleged denial of the right to collective bargaining.
While the labor complaint has been presented before the US Labor Department, it is still under investigation to obtain evidence that the company incurred in various or different violations relating to the labor rights of workers and thus be ready to be presented formally before the Mexican government.
In January of this year, the Union League announced that they will start with the application of the Industry-wide Labor Agreement at the Goodyear de México company atin its San Luis Potosí Plant; thus, the following benefits would be recognized: the Employee Welfare Benefit Fund, which represents 14.5% of the annualized salaries of unionized personnel; a 13% savings fund; IMSS [Mexican Social Security Institute] dues corresponding to workers; an increase of the vacation bonus of up to 108%, depending on seniority; the payment of 44 days of year-end bonus (28% was formerly paid), a 40-hour work week, with the payment of 56. Hence, workers affiliated to the League are seeking the application of the Industry-wide Labor Agreement at Pirelli.
