Canadian-based Orla Mining said it has taken steps and is working to implement outlines to safeguard labor rights and to address other concerns at its Camino Rojo gold mine in Zacatecas, Mexico.
The decision by the miner comes after a determination by a panel established under the Rapid Response Labor Mechanism of the Canada-U.S.-Mexico Agreement (CUSMA).
In late March, the panel issued a final determination concluding there had been a denial of rights relating to freedom of association and collective bargaining at Camino Rojo. It acknowledged remediation measures previously taken in coordination with the government of Mexico and identified additional actions needed to strengthen labor rights protections at the mine.
Orla said it is “engaging constructively” with government authorities to address the panel’s recommendations.
Some key actions include:
- Oversight, Accountability, and Governance: Orla has strengthened oversight of the mine through the appointment of a director of Risk & Compliance at the corporate level and a new general manager at Camino Rojo, as part of broader efforts to enhance internal controls and accountability frameworks. The company has enhanced its internal reporting and investigation mechanisms to ensure concerns are escalated, properly investigated, and addressed promptly and effectively through appropriate channels.
- Freedom of Association and Collective Bargaining: Orla is implementing a new Labor Rights Policy across the organization, reinforcing its commitment to freedom of association, collective bargaining, and non-retaliation. The company is also clarifying expectations for employees, contractors, and business partners through updated policies, training and oversight processes.
- Neutrality in Union Matters: The company has issued an updated neutrality letter reiterating its commitment to remain neutral in union representation matters and is taking steps to ensure this commitment is consistently understood and applied across its operations.
- Minority-Union Rights: Orla is implementing measures to safeguard minority-union rights in accordance with Mexican law, including facilitating access to the mine and establishing communication channels with designated Company representatives, while preserving the current collective bargaining framework.
- Security Enhancements: Orla is enhancing onsite security services and implementing additional measures to protect employees, contractors, and business partners.
- Worker and Community Engagement: Orla has communicated directly with employees and community leaders regarding the Panel’s determination and will continue to provide updates on additional steps through further engagement by senior leadership.
- Measures to Prevent Recurrence: Orla has strengthened internal controls, disciplinary and compliance systems, and training to reduce the risk of recurrence. The company has also reaffirmed its zero-tolerance policy toward interference with labor rights.
- Training and Capacity Building: Orla is expanding training for management and employees on labor rights, compliance obligations, workplace conduct, and reporting mechanisms, including mandatory certifications and sessions conducted by local labor authorities.
- Targeted Remediation Measures: Orla is conducting a structured, fact-based review of relevant employment matters to assess whether specific remedial action may be appropriate, to be carried out on a case-by-case basis in accordance with Mexican law.
- Commitment to Continuous Improvement: The company is committed to the continuous improvement of its governance, compliance, and security measures.
“We are committed to promoting the safety and well-being of our employees and fully respecting their labor rights,” said Jason Simpson, president and CEO.
“We acknowledge the seriousness of the panel’s findings and are taking action to strengthen Camino Rojo’s operations.”
Orla has three material projects, consisting of two operating mines and one development project, all 100% owned by the company: (1) Camino Rojo; (2) Musselwhite mine in northwestern Ontario, Canada, an underground gold mine that has been in operation for over 25 years and produced close to 6 million ounces of gold; and (3) South Railroad (the South Carlin Complex), in Nevada, a feasibility-stage, open pit, heap leach gold project located on the Carlin trend.
Source: Orla Mining