Court Orders Restitution of Occupied Plant
The Second Chamber of the San Isidro Appeals and Guarantees Court ordered the eviction of the Fate tire plant in Virreyes, San Fernando, and its return to the company. The ruling, issued on Friday, granted a request from Fate, which argued that the occupants had no right to remain. The court instructed Judge Esteban Rossignoli of Guarantee Court No. 4 to carry out the measure. The plant has been occupied by workers and the SUTNA tire workers union since February 18, when the company announced its closure and dismissed 920 employees.[S1][S2][S3]
The court found that conciliation efforts at both the national and provincial levels had concluded and that no progress had been made to resolve the dispute. National mandatory conciliation began on February 18 and, after a five-day extension, expired on March 18. The provincial process started the same day and was extended until April 21. The court noted that the occupation had lost its capacity to drive a reopening of the factory, stating that after seven months it no longer served as a motor for a solution. The ruling also clarified that the restitution order does not decide the underlying labor dispute.[S2][S3][S5]
Union Rejects Ruling and Vows to Stay
The SUTNA union swiftly rejected the court's decision, calling it aberrant and urging members to reinforce their presence at the plant. Union leaders declared that they would not move from the site. They called for a gathering at the factory gates on Friday at 10 a.m., which will include a symbolic embrace and a press conference. The union also announced that it would continue defending the workers' claim. The ruling was addressed to SUTNA Secretary General Alejandro Crespo.[S1][S2][S3][S5]
Understand this article deeper
Fate, controlled by the Madanes Quintanilla family and its Brazilian partner Vipal, announced the closure of its historic factory on February 18 amid a sharp drop in tire sales that had already led to a 30% reduction in activity. The company dismissed 920 employees and cut ties with a wide network of dealers and suppliers. The union had occupied the plant, calling the closure an illegal lockout. The company argued that those remaining in the plant are former employees and that their presence creates a security risk. The court also noted that 24 people have been charged in connection with the occupation.[S1][S2][S3][S5]
Background: A Historic Plant's Decline
Fate, founded in 1940, had been struggling for years. In 2019, when it employed around 2,000 people, the company filed a preventive crisis procedure and later requested another. The closure was the culmination of a long deterioration. In a statement, the company said that changes in market conditions forced it to face future challenges from a different approach while still valuing the industrial vocation that had always defined it. The plant's shutdown left hundreds of workers without jobs and marked the end of a historic tire manufacturing site in Argentina.[S4][S5]
