The Mexican unit of global steel giant ArcelorMittal has been embroiled in a prolonged standoff with the Mining Union, which has blocked part of its facilities since May 24. The union's actions, motivated by allegations of poor profit distribution to workers, have led to significant operational disruptions and financial losses for the company.
The dispute began with the union blocking entrances to an iron mine and a blast furnace in Lázaro Cárdenas, symbolized by red and black flags indicating a strike. ArcelorMittal responded by detailing the timeline of events, noting that the union issued a first strike call for June 11, followed by another for July 11. This suggests that the blocked facilities, despite being owned by ArcelorMittal, operate under two different legal entities.
Despite the union's efforts, the Federal Labor Court for Collective Affairs in Mexico City has repeatedly ruled against it. The court's decisions highlight the illegal nature of the work stoppage, leading to the rejection and archiving of the union's strike calls. These legal setbacks mark the third defeat for the union, which is led by congressman Napoleón Gomez Urutia.
ArcelorMittal's recent statement emphasized that the court's ruling not to process the new strike call demonstrates the illegitimacy of the union's actions. The company anticipates a forthcoming resolution that could extinguish the collective bargaining agreement and terminate employment contracts for over 1,200 workers from section 271 of the Mining Union.
The blockade, now in its 49th day, has caused significant financial losses for ArcelorMittal. If the blockade extends to August 7, it will reach 76 days, coinciding with a constitutional hearing where the labor court will make a final ruling. A favorable outcome for ArcelorMittal could lead to the mass dismissal of workers, potentially igniting social conflict as the new president-elect takes office.
The Ministry of Labor reported that the union has twice rejected proposals from ArcelorMittal aimed at resolving the blockade, describing these proposals as "very favorable for the workers." This ongoing rejection has prolonged the conflict, increasing tensions and uncertainty for the workers involved.
ArcelorMittal’s firm stance and the court's consistent rulings underscore the complexities of labor disputes in the steel industry. The outcome of this legal battle will have significant implications for industrial relations and worker rights within Mexico’s mining sector.
