Canacero warns that ArcelorMittal strike affects Mexican, US value chains

The ongoing blockade of ArcelorMittal's facilities in southwest Mexico by union members is affecting the value chains of the products made by the steel company both in Mexico and the US, warned local iron and steel industry chamber Canacero.

“We view with great concern the economic impact that this action has on the economic development of the region, particularly on MSMEs and the families of the thousands of ArcelorMittal workers. This strike also impacts various productive sectors,” the chamber added in a statement.

The strike began at the steelmaker's facilities in Michoacán state on May 24 due to a disagreement over the distribution of profits. 

ArcelorMittal has warned that the blockades have caused irreparable damage to its equipment and multimillion-dollar losses, threatening jobs and the income of 8,000 families of direct employees and 50,000 households indirectly connected to its operations.

On June 8, a district judge specialized in labor issues ordered that two cases brought by the SNTMMSSRM union against ArcelorMittal Las Truchas and ArcelorMittal México should be shelved after determining that workers did not follow the proper procedure to call a strike. 

Canacero made “a thoughtful and respectful appeal” to the STMMSSRM, particularly to the 271 section that is on strike, as well as to the three levels of government to find a prompt solution to the conflict, "maintaining order and upholding the rule of law."

“We reiterate that the Mexican steel industry respects and will always vigorously defend human and labor rights, which include freedom of association. However, we categorically reject these rights being used as a pretext to legitimize unjustified claims that violate the rule of law,” Canacero said.

ArcelorMittal is the largest steel company in Mexico, with an annual production of 3.9Mt of crude steel and 4.5Mt of iron ore in its different complexes, according to sector data.