ArcelorMittal (AM) Mexico reached an agreement Thursday evening, July 18, to end the 55-day strike that began on May 24, 2024. Located in Lazaro Cardenas, in the Michoacán state, the steelmaking and mining facilities came to a screeching halt due to the mining union (the National Union of Mine, Metal, Steel, and Alllied Workers of the Mexican Republic) protesting against the annual profit distribution to AM's employees.
ArcelorMittal Mexico has a production capacity of 5.3 million tons of finished steel including flat-rolled steel, long steel, and slabs. This strike caused an estimated loss of almost 1 million metric tons of steel output. The cancellation of orders and loss of customers during this time will cause much difficulty for AM to recover in the market.
The steel company announced that their workers approved a new settlement including an 8% pay increase for employees and a review of their collective bargaining agreement. However, additional protests continued last Friday, July 19. "Unfortunately, a group of dissidents has chosen to continue the illegal blockade with acts of violence, putting the safety of those present and the population of the municipality of Lazaro Cardenas at risk," according to an ArcelorMittal statement. ArcelorMittal has said operations could resume once proper protocols were implemented and they are certain the technical and occupational health and safety conditions were in place.
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