Workers at Mexico’s biggest gold mine accepted operator Newmont Corp.’s proposal to end a four-month stoppage late Thursday.
(Bloomberg) — Workers at Mexico’s biggest gold mine accepted operator Newmont Corp.’s proposal to end a four-month stoppage late Thursday.
As part of the deal, workers at the Penasquito mine will receive 8% more pay for each shift, with the increase retroactive to Aug. 1, the mine workers union said in a statement. Each of the about 2,000 unionized workers will also get an equal share of a total 152 million pesos ($8.3 million).
The profit-sharing dispute related to 2022 will be decided by Mexico’s tax agency, while workers get 10% of profits for 2023 as long as the company sees a net income gain, according to the statement.
The mine workers voted Thursday afternoon after downing tools in early June in a dispute over profit-sharing and alleged contract breaches.
The vote came on the heels of negotiations between the two sides and with Mexican labor authorities, an assistant to Senator Napoleon Gomez Urrutia, who leads the union, said via text message earlier Thursday.
Read More: Newmont ‘Reviewing’ Mexico Investments as Worker Strike Drags On
Penasquito, in Zacatecas state in the center-north region of Mexico, is a major supplier of gold, silver, zinc and lead. The strike marks the third labor dispute since Newmont bought Penasquito as part of its takeover of Goldcorp Inc. in 2019.
Newmont Chief Executive Officer Tom Palmer visited Mexico in August to push for a resolution of the stoppage.
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