Background on Pirelli and the Relevant Labor Union
Pirelli, a prominent tire manufacturing company, recently granted its employees a 4% salary increase. However, this increment falls short of the projected inflation rate for 2024, which stands at 4.66%. According to the Liga Sindical Obrera Mexicana (LSOM), a labor union representing Mexican workers, this wage increase equates to an actual 1.41% decrease in purchasing power by August 2025, especially when compared to raises given at other companies within the same sector.
Comparison with Competitors’ Raises
Continental Tire and Bridgestone, Pirelli’s competitors, offered their employees salary increases of 5.0% and 5.6%, respectively. Goodyear provided its workers with a raise of 5.8%. The LSOM has expressed strong disapproval of Pirelli’s wage increase, emphasizing the presence of a false union representation that fails to safeguard workers’ interests.
Current Situation and LSOM’s Stance
Pirelli is currently facing a labor panel initiated by the U.S. government, following a complaint filed with the Rapid Response Mechanism under the Labor Mechanism. The LSOM argues that Pirelli and its affiliated union, the Confederation of Mexican Workers (CTM), have exploited this situation to justify a minimal wage increase and postpone it.
The LSOM urges Pirelli workers to join their union in order to establish a majority, which would enable them to demand Pirelli’s recognition of this majority and the termination of negotiations that work against workers’ interests.
Legal Proceedings and Centro Federal de Conciliación y Registro Laboral
The agreement has been submitted to the Centro Federal de Conciliación y Registro Laboral (CFCRL), led by Alfredo Domínguez Marrufo. The CFRL oversees labor dispute resolution in Mexico, and Domínguez Marrufo highlighted that the agreement includes a 4% raise for 3,350 workers. This move aims to “strengthen genuine collective bargaining and commitment to improved working conditions.”
From October 1, 2024, to June 30, 2025, the CFRL addressed 2,152 conciliation requests. Of these, 1,658 resulted in conciliation agreements, while 396 were archived for lack of interest, 54 cases experienced withdrawals, and 44 cases led to incompetence rulings.
Key Questions and Answers
- What is the controversy surrounding Pirelli’s wage increase? The LSOM argues that the 4% raise is insufficient, as it falls below both the projected inflation rate and raises given by competitors. This results in a real decrease of 1.41% in workers’ purchasing power.
- What is the LSOM’s stance on Pirelli’s current situation? The LSOM claims that Pirelli and the CTM are using a labor panel initiated by the U.S. government to justify minimal wage increases and postpone them.
- What is the role of the Centro Federal de Conciliación y Registro Laboral (CFCRL)? The CFRCL is responsible for resolving labor disputes in Mexico. In this case, it reviewed Pirelli’s proposed wage increase agreement and acknowledged a 4% raise for 3,350 workers.
