After 59 Days of Strike, Operations Resume at ArcelorMittal

After 59 days of striking, members of Section 271 of the SNTMMSRM lifted the blockade late Friday night and resumed operations on Saturday at ArcelorMittal’s steel plant in Lazaro Cardenas, Michoacan. While the plant is gradually resuming operations, the furnace area remains offline for preventive maintenance.

Despite a vote on July 18 by Section 271 members to end the strike, which began on May 24, a faction within the union continued the stoppage, citing concerns about the transparency of the agreement process and intense pressure from ArcelorMittal.

Sergio Alba, Secretary of the Interior, Exterior, and Records for the SNTMMSRM National Executive Committee, and Daniel Cosío, SNTMMSRM Delegate in Michoacan, noted that the resolution of the conflict was achieved through dialogue and the intervention of Napoleón Gómez Urrutia, National Leader, SNTMMSRM. Michoacan Governor Alfredo Ramírez emphasized that the ongoing pursuit of resolution underscores the vital role of the company in both Lazaro Cardenas and Michoacan.

What Happened at ArcelorMittal’s Facilities?

On May 24, workers from Section 271 of the Miners' Union blocked the steel plant's facilities due to dissatisfaction with PTU payments. However, ArcelorMittal stressed it adhered to legal provisions and regulations regarding payments. Víctor Cairo, CEO, ArcelorMittal, previously advised strikers to reassess their demands, asserting that expecting a 32% PTU payment was outside the law. Cairo also encouraged workers to accept the company’s proposal of a 10% PTU payment, which exceeded current legislative limits. During the strike, Federal Labor Court for Collective Matters and the Fifth District Judge in Labor Matters in Mexico City shelved the case, recognizing the work stoppage as premature and procedurally violative.

The agreement reached between the steel company and the workers mandates that ArcelorMittal increase wages by 8%, provide a package consisting of MX$17,000 (US$986) in grocery vouchers, full compensation for lost wages, and for an external audit to be carried around the 2022 and 2023 fiscal years to ensure the accuracy of profit-sharing (PTU) payments. The SNTMMSRM also called for ArcelorMittal to avoid any reprisals against workers and to halt the proceedings aimed at ending individual and collective labor relations.