No end in sight for Sicartsa strike
Reports coming from Lázaro Cárdenas, Michoacán, Mexico indicate that Grupo Villaceros Sicartsa subsidiary has decided to idle its blast furnace. The move appears to be further evidence that Grupo Villacero is hardening its stance against the National Union of Mine and Metal Workers of Mexico (STMMRM) and comes shortly after it refused to let the contract apply collectively to its plant in Apodaca, Nuevo Leon. Earlier last 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. On Friday (August 26) Mexico's labor minister Javier Salazar ordered STMMRM and Villacero to work out an agreement and end the month-long strike which has reportedly cost Sicartsa over $72 million. The decision to idle the furnace would seem to indicate, however, that the steelmaker does not believe an agreement is obtainable in the near future. Keeping the furnace operational means production can be resumed at a moment's notice. After idling the furnace, however, it could take up to 14 days to completely resume production.