The Mexican government, which remained silent on information for 47 days in the labor dispute between the union headed by the Senator of the Republic Napoleón Gómez Urrutia and the Mexican unit of the global steel giant, ArcelorMittal, broke the silence and warned that they rejected an agreement “very positive for workers.”
The blockade of part of the ArcelorMittal Mexico facilities began on May 24 and “on July 4, an agreement was reached with the National Mining Union and the company, which was very positive for the workers and was put to a vote on the 9th. July, being rejected by the majority,” reported the Ministry of Labor.
“The agreement between ArcelorMittal and the Mining Union was favorable for the workers, now it will be resolved in court,” the federal agency reiterated.
In the courts it will be resolved until August 7, that is, the blocked blast furnace and iron mine will be inactive for 76 days, which will stop producing around half a million metric tons (mt) of liquid steel and some 125,000 mt of rebar. SteelOrbis is the only media outlet that has reported that the strike will be resolved until the constitutional hearing on August 7, according to court agreements.
It is important to remember that on June 8 (day 16 of the blockade), ArcelorMittal said that there was already a million-dollar impact on the company's finances. Getting to day 76 without production will be worse.
On August 7, it will be decided whether to dismiss more than 1,200 unionized workers. This is because two different labor courts have indicated that the blockade is illegal, which violates the Federal Labor Law of Mexico.
If the dismissal of workers proceeds, public force will be required. This will generate a social conflict, which could be occurring when the current elected President of the Republic, Claudia Sheinbaum Pardo, assumes power.
Napoleón Gómez Urrutia is an ally of the current president of the Republic, Andrés Manuel López Obrador. Sheinbaum is also an ally of the current president. The three are from the same political party in power and Gómez will continue as a congressman, now as a Deputy. But the process of Sheinbaum assuming power could be clouded with a social conflict.