By Mary de Wet
Newmont said Monday that it has reached an agreement to end the strike at Mexico’s Peñasquito Mine that doesn’t include additional profit sharing, a demand that the company said was the basis for the labor action.
Under the deal with the National Union of Mine, Metal and Allied Workers of the Mexican Republic, Newmont will pay employees a fixed amount, roughly equivalent to 60% of wages lost, to mitigate the financial impact that the strike has had on Newmont’s workforce. The company will also pay a bonus, equivalent to two months’ wages, in the second quarter of next year if the Peñasquito mine reports no profit in 2023 as a result of the strike.
In separate, annual wage negotiations, Newmont and the union have agreed to an 8% wage increase, in line with Mexican mining industry wage increases for 2023. “These wage negotiations were not part of the Union’s claims as grounds for taking the strike action,” the company said.
Operations at the Zacatecas mine have been suspended since June. Newmont expects it will take several weeks to achieve stable production levels at the mine once it returns to operations.
The mine, which is located about 484 miles northwest of Mexico City, produces gold, silver, lead and zinc.
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