Newmont said it has come to a deal with the National Union of Mine, Metal and Allied Workers of the Mexican Republic to bring a strike at its Peñasquito operation in the Zacatecas state to an end.
The strike was initially called June 7. The parties submitted its agreement to the Mexican Labor Court on October 13, which was approved.
Newmont President and CEO Tom Palmer said the miner’s focus is now organizing a safe return-to-work plan and a quick ramp up of operations while strengthening workforce relationships.
He noted the strike was initiated by the union demanding the company pay additional profit sharing, equivalent to double the amount agreed upon one year ago, along with other alleged violations of the collective bargaining Agreement.
Some key terms of the agreement include:
- Newmont will not pay any additional incremental profit sharing for 2022. This was the basis for the strike, and the profit sharing paid by the company this year fully complied with Mexican law and the collective bargaining agreement.
- If, as a consequence of the strike, the Peñasquito mine reports no profit in 2023, then Newmont agrees to pay an additional bonus in Q2 next year, equivalent to two months’ wages as the company recognizes the hardship employees have experienced given the duration of the strike.
- Newmont will pay employees a fixed amount, roughly equivalent to 60% of wages lost, since the strike began on June 7, 2023. This payment is intended to mitigate the financial impact that the strike, initiated by the union, has had on the company’s workforce.
Additionally, as part of the separate, annual wage negotiations under the CBA, Newmont and the union have agreed to an 8% wage increase, in line with Mexican mining industry wage increases for 2023.
“This unnecessary strike has caused significant hardship for all of our employees, contractors, host communities, suppliers and customers,” he said.
“We will continue to honor our commitments, comply with the law and the collective bargaining agreement, and work to protect the long-term value of Peñasquito.”
In 2022, Newmont said Peñasquito contributed US$1.9 billion in economic value to Mexico, including $643 million in employee wages and benefits, taxes, and royalty payments to federal, state, and local governments, and investments in community infrastructure and water projects.
Minera Peñasquito is the second largest employer in Zacatecas.
Source: Newmont