Union Workers in Mexico Strike At An ArcelorMittal Facility For Profit-sharing

The national union of mining and metallurgical employees in Mexico went on strike at an ArcelorMittal (NYSE:MT) factory on Wednesday after labor officials failed to negotiate a profit-sharing deal with the steelmaker, according to the two parties.

According to the union, the Luxembourg-based company is refusing to split 10 percent of its fiscal year 2021 revenues with over 3,500 direct workers at the facility in the western state of Michoacán.

The steel business said that all payments were provided on schedule and that the amounts asked by the employees exceed the legal limit.

The corporation offered a one-time incentive equal to six months' income, but employees declined.

"ArcelorMittal Mexico regrets this decision since, in addition to increasing the dispute, it will have an effect and significant implications... on the national production chain and the economy of the country, considering the significance of steel," the firm said in a statement.

ArcelorMittal manufactures construction wire rods and rods, car industry components, and energy sector goods.