It hasn’t stopped! Strike at the Peñasquito mine has left multimillion-dollar losses

Isbel Lázaro.
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mina Peñasquito

Inspenet, August 17, 2023.

The Newmont mining company in the United States has experienced losses of more than 183 million dollars due to the strike led by section 304 of the mining union, headed by Napoleón Gómez Urrutia, at the Peñasquito mine. This strike seeks to increase profits beyond what is established in the Federal Labor Law.

On a daily basis, the strike is generating a loss of 2.7 million dollars , reaching 68 days in progress until August 13, 2023, according to the company. In response, Newmont’s lawyers have filed an imputability petition with the Federal Labor Court for Collective Matters to resolve the dispute.

This is the first strike that the Peñasquito Mine has faced under the leadership of Napoleón Gómez Urrutia’s union. So far, none of the 2,500 unionized employees have been fired, who in 2022 received profits equivalent to 32.3 months of base salary per worker, as recalled in the mining records.

During the current year, the punctual payment of profits to unionized workers has been made, equivalent to 13.2 months of base salary per employee, due to a decrease in the prices of gold, silver and zinc , according to reports.

Since June 7, the operation of the Peñasquito mine, which is the largest gold producer and the second largest silver producer in Mexico , has been halted, which has had an impact on suppliers and the entire region.

Section 304 of the National Union of Mining, Metallurgical, Steel and Similar Workers of Mazapil in Zacatecas has declared a strike arguing alleged violations of the collective bargaining agreement. Chief among these allegations is that the profit calculation was performed incorrectly .

The miners linked to also senator Napoleón Gómez Urrutia are demanding an increase in profits, requesting an additional payment equal to 20% instead of the 10% established by the Labor Law.

Peñasquito Mine: before, during and after the strike

The Peñasquito mine is located in the state of Zacatecas, at a distance of 780 kilometers northwest of Mexico City and for years, the mine has generated 5,000 direct formal jobs, including workers and contractors, as well as 28,000 indirect jobs. . Due to this, the mining company has become the main employer in Zacatecas.

During the last 3 years, the Peñasquito mine has allocated an investment of 7 million 500 thousand dollars in social projects . These include a water treatment plant that will supply the community of Los Cedros with this vital resource for the next three decades.

Over the course of fiscal year 2022, the company made payments of $380 million in federal taxes and social security contributions, in addition to about $18 million in state taxes.

During that same year, the mine complied with a profit-sharing payment, which was equivalent to approximately 32.3 months of base salary per unionized employee.

On May 30, the US company carried out the transfer of a 10% share in the profits, in accordance with the unlimited agreement established between the mining company and section 304 of the mining union.

“The calculation was made in accordance with the law, using the same formula applied the previous year. On average, the participation in profits paid based on the results of fiscal year 2022 was equivalent to 13.2 months of base salary, ”explains the US firm.

After receiving the strike notice, the company and the union participated in a mediation process that lasted for one day.

Subsequently, the company asked the union for an extension of this mediation period, with the purpose of continuing the talks and avoiding the interruption of operations. In addition, it was requested that the legal process established by the SAT be followed to address the dispute regarding the calculation of the distribution of profits.

According to Mexican regulations, a conflict related to the calculation of the earnings that the employer must pay as profits must be resolved through a legal challenge process before an entity other than the Labor Court, without this implying the need to initiate a strike.

Throughout this period, the company and the union have met on several occasions, now with the mediation of the STPS, to address the claims raised by the union.

The company continues to work in search of a fair solution that ensures a sustainable future for Peñasquito, its employees, the community and the entire value chain.

On August 7, the company started a legal process by submitting an application to the Federal Labor Court for Collective Affairs. Said request seeks that the court examine in detail each of the demands on which the strike is based, including the issue of the payment of the participation of the workers in the profits.

Source and photo: https://www.forbes.com.mx/huelga-en-mina-penasquito-deja-perdidas-por-183-millones-600000-dolares/

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