ArcelorMittal fires more than 1,200 workers due to illegal Mexican strike

Luxembourg-based steelmaker ArcelorMittal reported that it has fired 1,224 union workers in Mexico due to an ongoing strike classified as illegal at its facilities in Lázaro Cárdenas, Michoacán state.

The strike and pickets of its facilities have reportedly cost the company well over 500,000t of steel production since the action began on May 24 because of a dispute over profit-sharing with employees of section 271 of the SNTMMSRM union, who account for around 3,000 of the 8,000 workers that ArcelorMittal has in Mexico. 

“The company requested the termination of the collective bargaining agreement of section 271 from a federal labor judge as well as notifying 500 more layoffs, for a cumulative total of 1,224 layoffs to date,” it said in a statement.

The steelmaker stated that the union was informed of the termination of the collective bargaining contract because of the blockade of its facilities. 

The union action has continued despite the fact that a district judge specialized in labor affairs ordered the shelving of two legal proceedings the SNTMMSRM filed against ArcelorMittal Las Truchas and ArcelorMittal México on June 8, after ruling that the workers had failed to comply with the legal requirements to call the strike.

“Such acts constitute a cause of force majeure that allows the company to terminate its collective bargaining agreement and its individual employment relationships,” the firm said.

It also assured that a federal judge rejected a union request to halt the process to terminate the collective bargaining agreement for section 271. “This means that, the termination procedure of the collective contract can now legally be approved by the federal labor judge for collective affairs based in Mexico City,” the company added.

ArcelorMittal underscored that the termination of one of the union's most important collective contracts will be a very significant precedent for labor issues. 

ArcelorMittal México denied in the statement that a district labor judge in Mexico City had rejected or dismissed an injunction filed by the company against the strike, pointing out that the judge had shelved the union's legal proceedings because it had "transgressed the good faith of the procedure.”

BNamericas contacted a union press representative for comment, but did not receive a response as of press time.

Data from Michoacán industrial group Aiemac shows that ArcelorMittal accounts for about 30% of national steel distribution, which threatens other sectors, such as construction, manufacture of household and automotive appliances, and even the carbonated beverage industry.

BNamericas requested an update from Aiemac on the steel production that ArcelorMittal has lost, but a spokesperson said that the figures mentioned are the latest available.