VALENCIA, Venezuela — Pirelli C. & S.p.A. reportedly has idled production at its car and light truck tire plant in Valencia, where in the past it has employed as many as 700 workers.
According to local and Thomson Reuters new reports, union leaders said workers at the plant found the factory gates locked on Aug. 27.
One report, on the "Efecto-Cocuyo" news site, quoted union officials as saying Pirelli management told them they would not reopen the plant, claiming that they could not accede to paying a wage increase decreed on Aug. 17 by the government of Nicolás Maduro.
Pirelli has not responded to requests for comment.
Union representatives quoted in the stories said the plant had been operating at less than 10 percent capacity so far this year.
In January 2017, Pirelli's Venezuela plant stopped local operations for two weeks due to "lack of raw materials."
The Pirelli plant is one of three in Venezuela. The others are Goodyear's in Valencia and Alice Neumáticos de Venezuela, the former Bridgestone Americas plant in Valencia acquired in 2016 by Venezuela's Corimon Group.
Both Goodyear and Pirelli "deconsolidated" their operations in Venezuela in 2016 because of the unstable economic situation there.