ArcelorMittal and Labor Union Reach Agreement

On June 17, representatives of major steel producer ArcelorMittal and the National Labor Union of Mining Workers (SNTMMS) reached an agreement to call off the workers’ strike that started on June 15 at a steel-producing plant located in Lazaro Cardenas, Michoacan.

The company announced that after paying out the profit sharing (PTU), the equivalent to three months of salary as established by the Federal Labor Law and 2021’s corporate financial results, the company will grant an additional special and extraordinary payment. This will be the equivalent of a year’s worth of salary. The company added that it is a priority to work together with its employees and comply with the law. “We are very happy to reach a joint agreement, which will definitely benefit mining workers affiliated with the Labor Union in Lazaro Cardenas,” said Victor Cairo, Country Head, ArcelorMittal. 

The company credited the involvement of the Ministry of Labor and Social Welfare (STPS) and the Governor of Michoacan, Alfredo Ramírez. They promoted dialogue and were key in reaching the agreement, which the company considers to be fundamental to maintaining the labor stability in the region. “This agreement puts an end to the strike. We urge all employees to restart their duties in the plant,” the company stated. 

Workers were represented by Napoleón Gómez Urrutia, who is also a senator for Morena. Gómez considers the agreement a triumph for the Union and an unprecedented event in the 40 years of ArcelorMittal’s history. 

The union’s strike could have put the company’s performance in danger, which in 2021 was boosted due to the higher metal prices. ArcelorMittal expressed its concerns regarding the labor stability in the region and warned for severe consequences in the steel supply chain, since the company is the largest steel producer in the country and the largest employer in the state.

ArcelorMittal is the leading steel company in Mexico. Many of its operations are carried out at the Lazaro Cardenas port, where it produces steel and steel derivatives. The company also owns mines in Sonora, Sinaloa and Michoacan. The latter project has recently received an investment of over US$250 million with the aim to increase the national production of rolled steel from 2.5M tons to 5.3M tons.