The Mexican Chamber of the Iron and Steel Industry, Canacero, has voiced strong condemnation against the ongoing illegal blockade orchestrated by a faction of unionized workers, impeding the production of steel and the exploitation of an iron ore mine owned by the Mexican unit of global steel giant ArcelorMittal for the past 18 days.
"La Canacero condemns the strike faced by our member company ArcelorMittal at its facilities in Lázaro Cárdenas. According to what was resolved by the judicial authority, this situation lacks any legal basis," stated the business chamber, which represents the 10 largest steel companies in Mexico, in a press release.
The blockade of a section of ArcelorMittal's facilities in Mexico commenced on May 24, citing grievances over the inequitable distribution of profits to workers. On May 28, Section 271 of the Mining Union initiated a strike at the company. However, on June 8, a federal labor judge ruled the blockade as illegal.
As of noon on Monday, June 10, the blockade persisted at the steel company's facilities.
In response to the situation, Canacero articulated, "Despite complying with all applicable legal provisions, the company has proposed alternatives to achieve a conciliatory agreement, which have been rebuffed by the counterparty (the union), resulting in serious disruptions to the plant's operations and jeopardizing its future viability."
The impasse has not only led to operational hindrances but also raised concerns regarding the long-term sustainability of ArcelorMittal's operations in Mexico. The prolonged standoff threatens to exacerbate existing challenges faced by the steel industry, impacting not only the company but also the broader economy.
