Mexican labor judge sides with ArcelorMittal against steelworkers' union

A Mexico City district labor judge denied a protection request from mining and steelworkers union SNTMMSSRM related to a ruling that the strike at ArcelorMittal's Lázaro Cárdenas facilities in Michoacán state was illegal.

In a press release, ArcelorMittal said the latest ruling validates that the strike originally did not follow the rules, considering that work was suspended prior to the date of the strike's official announcement. 

“The federal labor court for collective affairs based in Mexico City determined not to process and dismiss a new strike notice presented by the mining union, demonstrating the illegal work stoppage,” the release said.

ArcelorMittal said that with the intention of justifying the illegal takeover of its facilities, which began on May 24, SNTMMSSRM presented a strike notice to the labor authority, of which the company was notified on May 30. The judge then indicated that a strike could start on June 11, but not before, as happened.

After verifying that the strike was illegal and that judicial rules were not respected, the Mexico City labor court judge ordered the dismissal of the strike procedures at the mine and steel plant on June 8.

But the union filed a request for a protection against the order, which was denied on Wednesday.

“In the request for a protection, the union tried to discredit the actuary who went to the source of work in Lázaro Cárdenas and who confirmed that the facilities were taken over; and he confirmed the violent restriction of access so the placement of the red-and-black [strike] flags was not valid to signal that the company was officially on strike,” ArcelorMittal said.

ArcelorMittal highlighted that this ruling “once again strengthens the position of the steel company in which it affirms that the conduct that has occurred and continues to this day consists of a hijacking of the facilities by the dissatisfied workers and the union that represents them to force the company to pay workers excessive amounts not established in the law.”

With the denial of the protection and without a valid strike notice, the steel company reiterated that "the workers and their union are carrying out an illegal suspension of work without legal basis or reason.

"It also constitutes a legal reason for a cause of force majeure to be declared and, therefore, the definitive termination of the collective and individual employment relationship, a process that is being handled by the collective labor courts in Mexico City, which will shortly dictate the respective resolution, which, if positive, extinguishes the [collective labor contract] and terminates the contracts and relationships with each and every one of the workers," it said.

Most members of the union's section 271 rejected proposals by ArcelorMittal to end the strike and picketing at the plant.

However, ArcelorMittal said it covered the profit-sharing payment in a timely manner on May 27 and exceeded the legal limit of three months' salary by increasing it by 10% without caps.

Shortly after the results of the union vote were known, the labor and social welfare ministry said in a statement that ArcelorMittal's proposal was “favorable for the workers,” so the issue will be resolved by the labor courts, which was interpreted as a show of support for the steel company.