ArcelorMittal, SNTMMSRM Reach Agreement to End 55-Day Strike

After a 55-day strike, the SNTMMSRM and ArcelorMittal have reached an agreement, allowing nearly 3,000 workers to return to work. Mediated by the Ministry of Labor and Social Welfare (STPS),  the agreement 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 an external audit of the 2022 and 2023 fiscal years to ensure the accuracy of the profit-sharing (PTU) payments.

"On Thursday, July 18, members of Section 271 in Lazaro Cardenas, Michoacan, voted to end the strike that began on May 24, 2024. The commitment is to address the Union's challenges within 35 business days after the agreement is signed. If there is any outstanding balance in favor of workers, the company will make the payment within the following 20 business days," stated Napoleón Gómez Urrutia, Leader, SNTMMSRM.

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.

What Happened at ArcelorMittal’s Facilities?

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 payments. Víctor Cairo, CEO, ArcelorMittal, previously 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 of a 10% PTU payment, which exceeds current legislative limits. 

Alfredo Ramírez Bedolla, Governor, Michoacan, indicated that although the Federal Labor Court for Collective Matters had shelved the case, recognizing the work stoppage as premature and procedurally violative, a final ruling from the Collegiate Court of the Federal Judiciary was still pending. 

Last month, ArcelorMittal laid off 1,224 unionized workers in Mexico because of the illegal strike. ArcelorMittal argues that the strike demanded the implementation of drastic actions, all conducted in accordance with the law.