ArcelorMittal Faces 500,000T Production Loss Due to Blockade

ArcelorMittal has seen a production decrease of over 500,000t due to a blockade lasting more than a month at its facilities in Michoacan. Victor Cairo, CEO, ArcelorMittal, has urged striking workers to resume operations and accept the company's proposal of a 10% profit-sharing (PTU) payment.

Since May 28, workers from Section 271 of the Miners' Union have blocked the steel plant's facilities due to dissatisfaction with PTU payments. However, ArcelorMittal has stressed it adhered to legal provisions and regulations regarding the payments.

Victor Cairo, CEO, ArcelorMittal, has advised strikers to reassess their demands, asserting that expecting a 32% PTU payment is outside the law. Cairo also encouraged workers to accept the company’s proposal, which exceeds current legislative limits. "We offered a higher amount as a special bonus. If this situation persists, there will be no profits next year." Cairo emphasized the critical need for the Mexican government to uphold the rule of law to prevent deterring foreign direct investment.

Alfredo Ramírez Bedolla, Governor, Michoacan, indicated that although the Federal Labor Court for Collective Matters has shelved the case, recognizing the work stoppage as premature and procedurally violative, a final ruling from the Collegiate Court of the Federal Judiciary is still pending. Ramírez emphasized that the state government has been involved in this matter under the guidance of the federal Ministry of Labor.