Union rejects ArcelorMittal proposal to end Mexico strike

The majority of the workers of section 271 of the SNTMMSSRM Mexican mining union rejected proposals made by steel company ArcelorMittal to end a strike and picket at its Lázaro Cárdenas facilities, the company said in a statement. 

ArcelorMittal regretted the decision, saying that it constitutes a "delicate and negative precedent that threatens certainty and the rule of law."

“The federal center for conciliation and labor registration has notified us that... the proposed solution was rejected by a majority of votes. We are extremely surprised that the workers and their union remain intent on holding the facilities hostage and putting their collective bargaining agreement at risk, as well as their source of employment,” ArcelorMittal added.

According to the final count, there were 2,435 votes against the company's offer, 337 in favor, 168 unused ballots and six null votes out of a total of 3,500 workers, a source linked to the workers told BNamericas.

“It is unthinkable that workers and the union that represents them, protected by illegality and absolute impunity, compromise the sustainability of a strategic company in Mexico in one of the most important productive activities,” the steel company said in its statement.

“And even more serious is that they rely on the exercise of their collective rights to simulate a legitimate movement that, in reality, aims to extort a company and obtain undue profits,” it added, underscoring that it will be unable to operate due to force majeure, which justifies the termination of collective labor relations.

The strike and picketing of the facilities began on May 24 due to disagreements over shared profit payments, which has been deemed by a labor court as illegal union action as the workers did not comply with the legal requirements to call the strike.

ArcelorMittal recalled that on May 27 it covered the required profit-sharing payment in a timely manner, exceeding the legal limit of three months' salary with a 10% increase.

Despite that, the strike has continued even though there are legal mechanisms for workers to express dissatisfaction with the amounts received.

"We have remained willing to engage in dialogue and conciliation, promptly responding to the calls of the authorities and with the willingness to put viable and reasonable proposals on the table to try and resolve this conflict in the best possible way," the steelmaker said, urging the union workers to resolve their differences with the company through institutional channels and legally.