Union rejects proposal to end strike at ArcelorMittal Mexico

A proposal and solution to end the strike were recently formulated in consultations between the steelmaker, mining union, and state and federal governments. However, ArcelorMittal Mexico said in a statement on July 10 that the proposal was rejected by a union vote. BNAmericas reported 2,435 votes against the offer and just 337 in favor.

“We are extremely surprised that the workers and their union remain intent on keeping the facilities hostage and putting their collective bargaining contract, as well as the source of employment, at risk,” the steelmaker commented.

ArcelorMittal reiterated its call for striking workers to resolve the conflict through legal channels, noting, “The consultation process DOES NOT LEGITIMATIZE the seizure of our facilities, nor does it modify in any sense the ILLEGAL nature of the strike and, on the contrary, confirms the cause of FORCE MAJEURE that prevents the performance of work in our company and justifies the termination of collective work relations.”

The company also restated its openness for talks, but said, “We are no longer willing to remain hostages to illegality and extortion in the face of claims that lack any basis.”

ArcelorMittal taking action

In late June, ArcelorMittal said it was preparing to legally terminate members of the striking Section 271 of the Sindicato Minero mining union.

BNAmericas reported on July 6 that ArcelorMittal had fired more than 1,200 workers involved in the illegal strike and asked a federal labor judge to terminate the collective bargaining agreement with the striking Section 271 mining union. SMU could not reach ArcelorMittal to confirm this information.

Strike’s impact

In a July 1 statement, the company noted the “serious effects that this situation has meant for our company and its entire value chain.”

Operations at the mill and Las Truchas mine have been down since the workers’ blockade began in May. Friday, July 12 will mark the 50th day of the strike.

SMU estimates the production loss at the Lazaro Cardenas mill to now be between 400,000 and 900,000 metric tons (mt) of steel. The mill has an annual steelmaking capacity of 5.3 million mt of both flat-rolled and long products. The facility’s hot-strip mill has a capacity of 2.5 million mt per year.

ArcelorMittal and the mining union have not responded to SMU’s multiple requests for comment.