“This unnecessary strike has caused great hardship for all of our employees, contractors, host communities, suppliers and customers,” said Tom Palmer, president and CEO of Newmont. “We will continue to fulfill our commitments, respecting the law and the Collective Agreement, always working to protect the long-term value of Peñasquito.”
Agreements
Among the most important terms of the Agreement are that Newmont will not pay any additional profit sharing for 2022. This was the basis for the strike, and the profit sharing paid by the company this year fully complied with Mexican law and the Contract. Collective.
If, as a result of the strike, the Peñasquito mine does not report profits in 2023, Newmont agrees to pay an additional bonus in the second quarter of next year, equivalent to two months of salary, as the company recognizes the difficulties they have experienced employees for the duration of the strike.
Newmont will pay employees a fixed amount, equal to approximately 60% of lost wages, since the strike began on June 7, 2023. This payment is intended to mitigate the financial impact that the strike, initiated by the Union, has had on the company’s staff.
Additionally, as part of separate annual wage negotiations under the Collective Agreement, Newmont and the Union have agreed to an 8% wage increase, in line with the Mexican mining industry’s wage increases for 2023. These wage negotiations They were not part of the Union’s demands as a reason for starting the strike.
Newmont’s priority is to safely return workers to this Level 1 operation while ensuring production ramps up in an orderly manner. It is expected to take several weeks to reach stable production levels and a status update will be provided during the company’s third quarter earnings call on October 26, 2023.
In 2022, Peñasquito contributed $1.9 billion to Mexico’s economy, including $643 million in employee salaries and benefits, taxes and royalty payments to federal, state and local governments, as well as investments in community infrastructure and projects. water.
Minera Peñasquito is the second largest employer in Zacatecas, with a workforce of more than 5,000 people. The mine supports a further 28,000 people and their families, in neighboring communities and across the country, who are part of the mine’s local and national supply chain.