ArcelorMittal Workers Go on Strike

On Wednesday, June 15, members of the National Labor Union of Mining Workers (SNTMMS) Section 271 went on strike at the steel producing company ArcelorMittal’s plant located in Michoacan, after failing to reach an agreement regarding profit sharing. 

After setting the negotiation table, attended by arbitrators and representatives of the Ministry for Labor and Social Welfare (STPS) and workers affiliated to SNTMMS, the company stated that no agreement was reached. Therefore, workers decided to go on strike this Wednesday.

According to the protesters, the company refuses to pay the 10 percent of 2021’s profit sharing corresponding to the 2021 tax year affects 3,500 direct workers and over 25,000 indirect workers of the plant. The company says the conflict is caused by the worker’s dissatisfaction about the money it offered on May 30, which was the equivalent of three months’ worth of salary. “The payment was made in full and on time, as well as by complying with the Federal Labor Law. Nevertheless, workers have asked for larger quantities than established by the law, arguing the payment’s unconstitutionality, a problem that does not fall on the company to resolve,” said ArcelorMittal in a statement. 

The company says that in addition to the amount required by law, it offered a performance bonus payment equivalent of up to six months of salary, according to the company. “Considering the company’s exceptional performance during 2021, we could offer an exceptional bonus equivalent to six months of salary in the negotiation rounds. Unfortunately, the union has rejected this offer,” the company added.  

The company regrets the workers’ decision and warned it will have severe consequences for the job stability and the economic development of the country. “ArcelorMittal is an essential link in the steel’s productive chain of both Mexico and the world,” the company added.

Despite the union’s decision, the company said it is open to dialogue and expressed its desire to continue the negotiation in order to achieve an agreement that satisfies both parties and reactivates operations as soon as possible. 

The Governor of Michoacan, Alfredo Ramírez, announced that he will start working on new negotiations to make this happen. He highlighted the importance of reaching an agreement, since ArcelorMittal is the largest company in the state in terms of its labor force.