News Room - Steel Industry

Posted on 06 Jun 2024

ArcelorMittal Mexico accumulates loss due to workers’ protest

ArcelorMittal’s operation in Mexico is suffering serious production impact due to the continuing workers' protests. The company estimates its losses at 100,000 tonnes of steel in the first ten days since the action began, Kallanish learns from the steelmaker.

On 24 May employees blocked access to the company’s Lázaro Cárdenas plant, requesting an increase in payments under the profit-sharing system among its 3,500 direct employees.

“The blockade to access to Lázaro Cárdenas plant and the Tenencia La Mira iron ore mine has resulted in the loss of more than 100,000t of production, generating an operational and financial crisis with serious economic repercussions,” ArcelorMittal says. “These events not only endanger the continuity of our operations but also the job stability of our collaborators, negatively affecting the region's economy.”

The company took all necessary measures to maintain the safety of the steel mill, stopping the blast furnace to mitigate the possible impacts that may arise from not having full operational security.

The negotiations between the workers' council and the company on benefits distribution and additional bonuses ended on Monday without agreement. Mexico’s Federal Labor Court approved a request by employees belonging to Section 271 of the mining union to extend talks until 11 June. If an agreement is not reached workers can proceed to declare an indefinite strike.

The steelmaker reiterates its willingness to maintain dialogue with the Union, through legal channels and calls on the authorities to intervene to reach an agreement, avoiding further escalation of the conflict.

Source:Kallanish