Former Altos Hornos de México employee Julia Elva Elizondo Menchaca traveled to Mexico City in August 2026 to petition the Bankruptcy Court, asking Judge Ruth Huerta García to block any deductions from her pending severance settlement for loans contracted through the Mutuality Aid Fund, according to reporting by La Prensa.
Legal Challenge Against Fund Deductions
According to her written petition filed with the court, Elizondo Menchaca spent 31 years working for Altos Hornos de México (AHMSA) before losing her salary and severance during the company’s prolonged insolvency proceedings. She argues that court-appointed syndic Víctor Aguilera lacks the legal standing, personality, and authority to deduct loan repayments for the Mutuality Aid Fund (FAM) from workers’ severance packages, as reported by La Prensa.
Elizondo Menchaca stated in her filing that the fund, which was established by thousands of trusted employees, does not constitute an asset of AHMSA. Consequently, she maintains that any agreement allowing the syndic to tap worker settlements to cover those debts is null and void under Mexican law.
Constitutional Protections and Bankruptcy Law
The petitioner asserts that reducing her settlement violates Article 224 of the Bankruptcy Law (Ley de Concursos Mercantiles), as well as Articles 1 and 123 of the Mexican Constitution, according to La Prensa. Those legal provisions guarantee that workers’ indemnifications remain free from deductions, securing funds essential for basic subsistence, housing, and medical care after more than three years without regular income.
Through her legal action, Elizondo Menchaca is asking the court to order the syndic to maintain clear lists of labor credits and ensure that workers do not face unauthorized loan deductions on top of the steep reductions already impacting their severance totals.
Broader Labor Demands in AHMSA Proceedings
This challenge runs parallel to other relief efforts organized by former AHMSA workers. According to coverage from La Prensa de Coahuila via PressReader, former employees have also suggested that their labor defense committee petition federal secretariats to exempt their eventual severance payouts from income tax (ISR).
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