Steel Mills
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/ff54ed2282b4ee7fc3665c850d7fa50c.jpg)
Workers Initiate Illegal Strike at ArcelorMittal Mexico
Written by Sandy Williams
March 6, 2016
More than 3,000 workers at ArcelorMittal steel mill Lazaro Cardenas in Michoacan, Mexico went on what has been classified as an illegal strike on March 4 to protest job cuts and idled operations. Workers marched in a protest rally and placed red and black flags at the doors of the steel company to announce the work stoppage.
Section 271 of the National Union of Mine, Metal, Steel and Allied Workers of the Mexican Republic has argued that recent layoffs at ArcelorMittal are unjustified and a violation of the collective bargaining agreement.
In a company statement, Lazaro Cardenas called the strike an “illegal blockade.” The work stoppage affects the company’s value chain which will make Lazaro “unable to meet commitments to customers and suppliers.”
ArcelorMittal Mexico said it has taken preventive measures to address the “difficult economic environment prevailing in the domestic and international steel industry and to ensure the sustainability of the business.”
In July 2015, Mexican steelmakers Altos Hornos de Mexico (AHMSA), De Acero, Tubacero and ArcelorMittal announced massive layoffs as a result of dumped steel imports and called for stronger enforcement measures on unfairly traded imports. The government has stepped up efforts to address imports with new trade investigations and in October levied a six-month 15 percent tariff increase on steel imports from countries that do not have a free trade agreement with Mexico.
The Undersecretary of Labor, Rafael Avante Juárez, said the Ministry has approached Section as an intermediary to try to find a solution to the illegal work stoppage. Juárez stressed the need for “labor peace.”
The Association of Industries of the State of Michoacan (AIEMAC) urged workers to focus on dialogue and to realize that the domestic steel industry is facing unfair competition from Chinese and Russian imports. Guízar Rogelio Perez, president of the AIMEAC, said tariffs on imported products have been insufficient and have resulted ArcelorMittal’s need to reduce lines of production.
The last strike at ArcelorMittal Mexico was in August 2009 over wages and benefits. The strike lasted about a month and was resolved after workers obtained an 8 percent wage increase and improved benefits package.
Said ArcelorMittal Mexico in a statement, “We regret the union’s decision, and we hope to reach an agreement that allows us to restore normal operations as soon as possible to minimize the impact to all who work in the company, their families, and the community in general, at Lazaro Cardenas.”
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/04/sandy-williams.jpeg)
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/stelco.png)
Steel Summit 2024: Stelco CEO reflects on strategy, growth, and sale to Cleveland-Cliffs
In a candid fireside chat with SMU Senior Analyst/Editor David Schollert, Stelco’s CEO Alan Kestenbaum opened up about Stelco’s pending sale to Cliffs, his business strategy, outlook for the industry, and plans for the future. The chat took place on Tuesday, Aug. 24, at the 2024 SMU Steel Summit in Atlanta.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/AISI.png)
AISI: US steel shipments unchanged in July vs. June, down on-year
Domestic steel shipments remained nearly flat in July month over month but fell from a year earlier.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/white_house.png)
Media reports: Biden could block USS sale on national security concerns
President Joe Biden could block the $15-billion sale of U.S. Steel to Japan's Nippon Steel by citing national security concerns That’s according to reporting in the Washington Post and the Financial Times that was later picked up by the New York Times as well as in wire services.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/US_Steel.png)
USS threatens to cut ‘thousands’ of jobs, move HQ if Nippon sale blocked
U.S. Steel could slash thousands of jobs, shift away from integrated steelmaking, and move its headquarters out of Pittsburgh if its acquisition by Nippon Steel isn’t completed, the company’s top executive said. “We want elected leaders and other key decision makers to recognize the benefits of the deal was well as the unavoidable consequences if the deal fails,” company President and CEO David Burritt said in a statement on Wednesday.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/SSAB.png)
CRU: SSAB to expand Mobile plate mill
SSAB plans to spend $12 million to boost production capacity at its electric-arc furnace (EAF) plate mill in Mobile, Ala. The Sweden-based steelmaker will do that by expanding the existing furnace there. Shot blast equipment will also be upgraded. The expanded capacity is expected to come online late next year. The mill currently has an […]