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 get an 8% pay rise, retroactive to Aug. 1, the union said in a statement. Each of the about 2,000 unionized workers will also receive a share of a total 152 million pesos ($8.3 million).
Miners voted Thursday afternoon after downing tools in early June in a dispute over profit-sharing and alleged contract breaches. Profit sharing for last year will be decided by Mexico’s tax agency, while workers will get 10% of 2023 earnings as long as the company sees a net income gain, according to the statement.
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.
The deal still needs the formal sign-off from a labor tribunal. “We hope this process concludes in the coming days, putting an end to the strike and allowing Penasquito to recommence activities,” Newmont said in a statement.
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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