Mining professionals call on Mexican govt to try to end Peñasquito strike

Mexico’s mining engineers, metallurgists and geologists association AIMMGM urged the labor ministry to guarantee legality in labor relations and the legal framework to lift the three-month strike at Minera Peñasquito’s gold-silver mine (in photo) in Zacatecas state.

The AIMMGM, which represents more than 3,000 technicians and professionals, recommended in a statement that corresponding authorities hold talks with the union and with the legal representatives of the company, a subsidiary of US major Newmont, to reach an agreement.

On June 7, some 2,000 members of the union of mining, metallurgical and steelworkers at what is Mexico’s largest gold mine voted to go on strike after denouncing breaches of the collective bargaining agreement and profit-sharing payments, and demanded that workers’ share of earnings under the PTU scheme increase from the 10% fixed in the collective agreement to 20%.

The company, however, has insisted that it has complied with the law and with the collective bargaining agreement, so it will not make any additional payments under the PTU and will continue with the legal process to obtain a resolution, even if it takes another three months.

On August 8, Minera Peñasquito asked a federal labor court to analyze the merits of the union's claims.

“It is necessary to reach a legal resolution, with unrestricted respect for the rights of Peñasquito mineworkers and the collective bargaining agreement that was signed by the parties in June 2022 must also be complied with,” the AIMMGM said.

Last week, the subsidiary of the world's largest gold producer calculated that the accumulated losses of the strike at the Peñasquito mine amounted to US$562mn. 

The AIMMGM warned that if the mine remains inactive, it will continue to affect the income of more than 5,000 families of workers and contractors, as well as 28,000 indirect workers in the value chain.

"Mexico needs to maintain formal employment for economic growth and guarantee compliance with the legal framework, to continue being attractive for national and international investment," the association added.

In 2022, Peñasquito produced 566,000oz of gold, 29.7Moz of silver, 171,000t of zinc and 66,000t of lead, according to Mexican mining chamber Camimex, making it the top producer of the four metals in the country.