Tornel Strike Ends With 40-Hour Workweek Agreement

After a bitter five-month strike that halted operations at four manufacturing facilities in Mexico City and the State of Mexico, workers at Mexican tire manufacturer Compañía Hulera Tornel have unanimously ratified a 15-point conciliation agreement with company management.

The agreement, reached through intensive mediation led by the Ministry of Labor and Social Welfare (STPS) under instructions from President Claudia Sheinbaum, ends one of Mexico’s most significant labor disputes of 2026.

The strike, which began on Feb. 23, 2026, involved 1,051 unionized workers and completely halted production at the company's main facilities, including its flagship manufacturing plant in Tultitlan, State of Mexico. At its peak, the shutdown halted production of an estimated 21,000 tires per day, creating supply chain disruptions across Mexico’s automotive and transportation sectors.

Members of the Sindicato Nacional de Trabajadores de la Compañía Hulera Tornel approved the agreement by a show of hands during a general assembly at the union's headquarters in Tultitlan. The vote complied with Mexico’s 2019 labor reform, which requires direct and democratic union consultations to validate collective bargaining agreements.

With the agreement now ratified, union leaders and company representatives are completing the remaining administrative procedures before removing the traditional red-and-black strike banners (banderas rojinegras) and restarting operations.

Key Settlement Provisions: Hours, Wages, and Benefits

The centerpiece of the agreement is the phased implementation of a 40-hour workweek. The company will reduce the workweek to 44 hours immediately upon resuming operations—or no later than Aug. 1, 2026.

The full 40-hour workweek will take effect on Jan. 1, 2027, aligning company practices with the industry's Contrato Ley, the collective bargaining agreement governing Mexico's rubber and tire sector. Union leaders described the measure as the strike's most significant achievement, arguing it establishes an important precedent for implementing shorter workweeks through collective bargaining ahead of any national legislative mandate.

The financial terms include:

• Retroactive wage increases: A 6% salary increase for 2025 and a 5% increase for 2026, both applied retroactively and incorporated into benefit calculations.
• Future wage protection: Annual salary increases for 2027 and 2028 will be set at two percentage points above Mexico's annual inflation rate.
• Back-pay compensation: Tornel agreed to compensate workers for 60% of the wages lost during the nearly five-month strike.
• Year-end bonus (aguinaldo): The mandatory year-end bonus will increase from 36 days of pay to 42 days in 2026 and 44 days in 2027 under the Contrato Ley.
• Vacation premium (prima vacacional): Vacation compensation will increase from 25% to 31%, applied retroactively according to each employee's seniority.
• Additional labor benefits: The agreement also includes mandatory Sunday premium pay (prima dominical), new job classifications, specialized departmental bonuses, and adjustments to Social Security contributions.

Historical Background

The 2026 strike culminated years of tensions between the union and company management. Tornel, originally founded as a Mexican manufacturer, was acquired by India's JK Tyre & Industries in 2008.

Union leaders argued the dispute extended beyond wage demands. They sought to restore contractual benefits that had been reduced in 2017 after previous union leadership accepted concessions affecting benefits and working hours.

Timeline of the Dispute

Before launching the strike, the union sought relief through the USMCA Rapid Response Labor Mechanism. In January 2026, it filed a petition alleging violations of collective bargaining rights and labor obligations.

After those efforts failed to produce a resolution, workers voted to strike on Feb. 23. During a subsequent vote on March 22 to reaffirm support for the labor action, 883 workers voted to continue the strike, while 113 opposed it.

Escalation and Public Pressure

The prolonged strike strained workers financially and eventually escalated into violence.

On March 18, 2026, an armed group attempted to break up the strike encampment outside the Tultitlán plant. Four workers were wounded by gunfire, and two suspects were arrested. Both the STPS and the Federal Center for Labor Conciliation and Registration condemned the attack.

Negotiations repeatedly stalled throughout April, May, and June. Union representatives accused management of deliberately prolonging talks to weaken workers financially.

To sustain the strike, employees organized rotating picket lines, donation campaigns, and solidarity demonstrations supported by local communities, student organizations, and independent labor unions. On May 1, 2026, workers marched in central Mexico City during Labor Day events, urging President Sheinbaum and Labor Minister Marath Bolaños to intervene directly.

Industry Implications

The Tornel settlement establishes a significant precedent for collective bargaining across Mexico's manufacturing sector. By using strike action to enforce provisions contained in the industry's Contrato Ley, the union secured both shorter working hours and substantial economic gains. 

Despite approving the agreement, union leaders acknowledged that several long-term issues remain unresolved. Among the most important is restructuring IMSS contributions so employers fully absorb Social Security costs without deductions from workers' salaries. The union also noted that the company's employee savings fund will remain capped at 12.5% through 2028.