The mining union which has been blockading some parts of the production facilities at ArcelorMittal México for the last 39 days rejected a proposal for a solution to the conflict last Friday. The company alerted the community in general about “serious effects,” according to a paid advertisement in the Mexican newspaper El Norte.
“We express our concern and alert for the serious effects that this situation has meant for our company and its entire value chain (...), the terrible damage that is being caused to the more than 8,000 direct jobs and 50,000 indirect jobs that depend on our company,” ArcelorMittal warned. The company said it offered workers additional financial payments to those already made.
On Monday, a labor judge in Mexico City determined to grant a definitive suspension against the intention to cancel the collective bargaining contract with the Mining Union. At the moment, there was no information from the company or the union in this regard, on Tuesday the judge will make his resolution public.
A brief calculation carried out by SteelOrbis shows that this strike, until today, prevented the production of up to 250,000 metric tons (mt) of billet. This product is sent to another ArcelorMittal facility for rebar production. According to industry data, the company lost about 64,000 mt of rebar production.
SteelOrbis requested information from the company about the billet supply process for the Celaya, Guanajuato plant that consumes steel from Lázaro Cárdenas to produce rebar, but there was no response.