Agreement between ArcelorMittal and mining union was favorable for workers, now it will be resolved in court

Press release by STPS

This is a machine translation of the original release, issued in Spanish 

July 10, 2024

The Ministry of Labor and Social Welfare (STPS), in coordination with the Federal Labor Center, the Government of Michoacán and the Ministry of the Interior, promoted, through dialogue between the Mining Union and the ArcelorMittal company, a favorable agreement for the workers. which today was rejected by the majority, so the issue will be resolved in the labor courts.

To put an end to the work stoppage that has been experienced in the company since last May 24, motivated by disagreement over the payment of the profit sharing (PTU) granted in the years 2021, 2022 and 2023, the STPS established a roundtable negotiation with the company and the National Mining Union that would allow progress in a solution to the conflict and preserve the more than 8 thousand jobs in the region.

The Government of Michoacán and the Ministry of the Interior were present at these negotiation tables. Last July 4, an agreement was reached with the National Mining and Company Union, which was very positive for the workers and was put to a vote by them this Tuesday, July 9, and was rejected by the majority.

The agreement, endorsed by both parties, considered the following:

• Once activities have been reactivated. The company will give each worker

$20 thousand pesos in cash and $20 thousand pesos in food vouchers.

• 75% of lost wages will be paid.

• An audit will be carried out by an accounting firm proposed by the STPS for fiscal years 2022 and 2023 in order to determine whether the PTU calculation carried out by the company was correct.

• The SAT will issue the opinion on the review of the profits delivered in 2021 in order to identify whether it was carried out correctly.

• In the event that the audits and the SAT opinion indicate that the amount to be distributed was more than what was delivered, the difference will be paid to the workers.

The agreement contemplated that, if approved by the majority of the workers, activities would resume today, July 10, however, it was rejected by the majority, with 2,778 votes being cast, of which 337 were in favor and 2,435 against, with 6 null votes.

Derived from this result, the conflict will continue its course in the labor courts, however, the STPS together with the Federal Labor Center will continue to promote dialogue between the parties for the prompt end of the strike and the resumption of activities, with respect for rights. labor and for the benefit of the jobs that are generated in the area.