Workers want higher salary to end blockade at ArcelorMittal Mexico

Monday, 15 July 2024 11:19:40 (GMT+3)   |   San Diego

The mining union that has kept part of the facilities of the Mexican unit of the global steel giant, ArcelorMittal, blocked since last May 24, received another judicial setback.

After 50 days of blocking part of the ArcelorMittal Mexico facilities by its union, its leader Napoleón Gómez Urrutia said that the workers want more money than the $2,139 that the company offers to conclude the labor dispute that began on May 24 . If not accepted, the blockade will be defined up to the Highest Court of Mexico, which could extend the inactivity for much longer.

“It is a very dangerous (labor) conflict (...), if necessary we will go to the Supreme Court of Justice (of the Nation, SCJN). We are going to fight in court,” said congressman and union leader Napoleón Gómez Urrutia in an interview with the Mexican newspaper La Jornada.

La Jornada, like the union leader, are allies of the president of Mexico, Andrés Manuel López Obrador. The political party that the president founded made Gómez a Senator and starting in October he will continue as a congressman, now as the equivalent of the United States House of Representatives.

The union leader said that at the beginning of the conflict, ArcelorMittal México offered to unblock the conflict MXN 3,000 ($160) in food vouchers and in the face of rejection it has increased its offer to MXN 40,000 ($2,139), but half in cash and the other part in food vouchers.

In addition, the company promised to pay 75 percent of salaries in the blocking period, undergo a tax audit to verify the payment of profits and suspend the procedure of laying off workers.

That last proposal was rejected in a vote by the majority of the workers. In this regard, the Mexican government said through the Ministry of Labor that the rejected agreement was “very good” for the workers and that the solution to the conflict will be had in the courts.

In the courts it will be resolved until August 7, that is, the blocked blast furnace and iron mine will be inactive for 76 days, which will stop producing around half a million metric tons (mt) of liquid steel and some 125,000 mt of rod.

Alleging violation of Mexico's federal labor law, ArcelorMittal intends to dismiss more than 1,200 workers.

According to the company, since the 16th day of the blockade (June 8), the company has recorded million-dollar losses and until the 76th (August 7) ​​there will be more.


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