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ABC-NACO reaches deal with striking Mexican workers

An 80-day-old labor dispute between ABC-NACO Inc. and unionized workers at the company's Sahagun, Hidalgo, Mexico, plant came to an end Aug. 19 when union members ratified a new labor agreement. The plant Aug. 20 resumed full operations.

ABC-NACO officials agreed to a modest wage increase — more in line with Mexico's national averages — and promised to establish new approaches toward increasing labor productivity and operating flexibility.

"With this agreement, I believe that our Mexican unit will have the opportunity to reach its potential even during this period of weak market demand," said Vaughn Makary, ABC-NACO president and chief executive officer, in a prepared statement.

ABC-NACO June 14 cut production at the Sahagun plant to help offset a strike that began after its labor contract expired May 30.

Contact Progressive Railroading editorial staff.

More News from 8/20/2001