Fate ordered to pay 1.2 billion pesos in unpaid wages to 200 workers

Argentina's Labor Court No. 17 has ordered the tire manufacturer Fate to transfer 1.2 billion pesos to pay outstanding salaries to 200 workers. The payment, which covers wages owed from March to June 2026, is scheduled to be completed by Friday, October 23, using funds that had been previously seized through preventive embargoes.

The ruling follows the closure of Fate's plant in San Fernando, an event that originally affected 920 employees. The dispute centers on a labor stability agreement signed in May 2025, which granted the company state tax benefits in exchange for a commitment to avoid layoffs until June 30, 2026. The Sindicato Único de Trabajadores del Neumático (SUTNA) has characterized the plant closure as an illegal lockout.

The court-mandated amount of 1.2 billion pesos sits between the 1.8 billion pesos claimed by the union and the 600 million pesos argued by the company. This specific ruling does not include employees who signed voluntary retirement agreements, a group the union intends to challenge, alleging those agreements were signed under economic extortion. SUTNA has indicated it will appeal the decision, arguing the amount fails to account for inflation or seniority.