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US asks Mexico for labor panel to resolve Camino Rojo mine conflict

Bnamericas
US asks Mexico for labor panel to resolve Camino Rojo mine conflict

The US government has asked Mexico to set up a dispute resolution panel in the case of Orla Mining subsidiary Camino Rojo in Zacatecas state, through the rapid response mechanism of the USMCA agreement.

US Trade Representative Katherine Tai said Thursday that the call for a labor panel under the trade deal has been made for the third time.

The announcement follows a request for review that the United States sent on August 29, asking Mexico to review whether workers at the gold and silver mine are being denied the right to freedom of association and collective bargaining.

In a statement, Tai said that in at least 22 cases to date, the United States and Mexico have been able to cooperate to successfully address labor rights violations at the Mexican facilities in question.

However, “an agreed resolution was not met in this matter, and the United States therefore has determined that it is appropriate to request a panel to verify the facility’s compliance with Mexican labor laws,” according to a statement from the Office of the US Trade Representative.

“Every worker deserves the freedom to organize, to join a union, and to speak up for what’s fair – without fear or intimidation,” said Tai.

In November, the United Steelworkers union filed a complaint under the USMCA agreement against Canada’s Orla Mining for alleged violations of workers’ rights at Camino Rojo, calling for an independent panel to launch an investigation.

In June this year, the US government’s Interagency Labor Committee for Monitoring and Enforcement received a request to apply the rapid response mechanism from Mexican mining and metalworkers’ union Mineros, alleging a denial of rights by Orla.

The Camino Rojo open pit mine started commercial operations in April 2022 and last year it produced 121,877oz of gold, exceeding guidance.

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