Strike Takes Bite Out of ArcelorMittal Production In Mexico
09 March 2016 - 10:27AM
Dow Jones News
By Anthony Harrup
MEXICO CITY -- A strike at the Mexican plants of steel maker
ArcelorMittal is causing lost production of between 8,500 and
10,000 metric tons of steel per day, the company said.
Members of the Mexican Mining and Metal Workers union went on
strike Friday and began picketing the steel mills at Lázaro
Cárdenas on Mexico's Pacific coast, alleging "multiple violations"
of its collective contract. Mexican labor authorities ruled that
the strike was illegal, but the union went ahead with the action
saying that it follows months of talks with the company seeking to
address union complaints.
"The effects of this illegal blockade are already being felt,"
ArcelorMittal said in a statement. With the loss of 8,500 to 10,000
metric tons of steel production a day, "we run the significant risk
losing customers because of the uncertainty, placing the company in
an even more critical situation considering the difficult situation
the sector is going through."
ArcelorMittal is among of Mexico's largest steel makers. It
produced 3.9 million metric tons of steel in the country in 2014,
the latest figure available.
Ricardo Torres, local secretary general of the labor union in
Lázaro Cárdenas, said the company refuses to fill vacancies and has
let go part-time workers who would cover for absences, leaving
heavier workloads for remaining employees and compromising
safety.
"The company argues that it needs to reduce costs and expenses,
and the worker base has diminished," he said.
The final straw that led to Friday's strike by some 3,100
unionized workers was the closure of a plant used to make coke,
which left 238 workers without jobs, Mr. Torres said. Those workers
had to be relocated or given severance pay, and the company
complied with neither, he added.
ArcelorMittal officials weren't available to comment Tuesday. A
Labor Ministry spokesman was unavailable for comment.
The Mexican steel industry has been suffering from weak global
demand for steel, global overcapacity and cheap imports into Mexico
from countries such as China. The government last year placed a
temporary 15% import tariff on dozens of steel products that it
deemed were hurting local industry.
"The situation for steel has been bad, with the imports of
foreign steel, so productivity levels are very low," Mr. Torres of
the metal workers union said. "We're aware of the difficult
phase."
Write to Anthony Harrup at anthony.harrup@wsj.com
(END) Dow Jones Newswires
March 08, 2016 18:12 ET (23:12 GMT)
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