Hope fades for Sicartsa strike
Tags: Mexico , North America , production , conferences | similar articles »
Further Sicarsta strike details have emerged and the prognosis for any kind of agreement is negative. On Wednesday (August 31), it was announced that the National Union of Mine and Metal Workers of Mexico (STMMRM) and Grupo Villacero, Sicarstas parent company, had reached an agreement to end a strike at Sicarsta's Lázaro Cárdenas, Michoacán, Mexico plant. The strike has so far reportedly cost Sicartsa $90 million. As late as yesterday, sources close to the unfolding events had high hopes that a resolution to the 32-day old strike was very close and a vote by the STMMRM would finally end the strike, putting workers back at their posts by the end of the week. Despite those hopes, it now appears that, as of today (September 2), there will be no end to the strike now, or anytime soon. In a shocking move, the STMMRM has voted down the proposed contract put forth by Sicartsa management. Readers may recall that on August 26, Mexico's labor minister Javier Salazar ordered STMMRM and Grupo Villacero to iron out an agreement as soon as possible. Earlier that week the union rejected a management-sponsored economic package. The union claimed the only tangible improvement was a six percent wage increase. Among other things the steelmaker had offered were a nine percent social benefits increase and one-off two percent salary increase. Furthering the divide was managements refusal to allow let the contract collectively apply to its plant in Apodaca, Nuevo Leon. Reports emerged thereafter that plant management was drawing a proverbial line in the sand by deciding to idle the blast furnace. Keeping the furnace operational would mean production could be resumed at a moment's notice. After idling the furnace, however, it could take up to 14 days to completely resume production. It now remains to be seen where the two sides will go from here. SteelOrbis will continue to bring you updates as they occur.
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