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December 10, 2007 |
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GRUPO MEXICO: Negotiation with Mining-Metal Workers Union Fails Grupo Mexico SA, de C.V. failed to reach any agreement with the national mining-metal workers union STMMRM during their negotiation last Thursday, Business News Americas reports. Union spokesperson Carlos Pavon Campos told Reuters that the protests against Grupo Mexico will continue due to the stalemate. BNamericas notes that at the labor ministry's order, Grupo Mexico negotiated with the union to try to end a four-month impasse which has kept operations paralyzed at the firm's Cananea copper mine, San Martin zinc mine and Taxco silver-lead- zinc mine. Reuters says that Grupo Mexico failed to attend a meeting in November 2007. The labor ministry had said that the negotiation would be limited to the charges of mine and safety violations at Grupo Mexico operations, BNamericas relates. Reuters reports that about 65 miners were killed in an explosion at a Grupo Mexico coal mine in 2006. Union leaders claimed that Grupo Mexico refused to consider its recommendations for the safety of workers at Cananea. Employees told Reuters that "thick piles of dust and disconnected ventilators at Cananea are a major health hazard." Mr. Pavon commented to Reuters, "We will not accept people going back to work in unsafe conditions." BNamericas states that the union pointed to Grupo Mexico's "multimillion-dollar investments" for the construction of new mines in Mexico and Peru as proof that the firm has funds "to put toward bringing mine safety and hygiene up to standard." Grupo Mexico told BNamericas that the problems at Cananea are "easy to rectify." Grupo Mexico alleged that the purpose of the union's protest is to clear the name of their boss Napoleon Gomez, who escaped to Canada in 2006 when arrest warrants for corruption charges were issued against him, Reuters relates. The union sent a letter to Mexican President Felipe Calderon denying Grupo Mexico's claims that the strikes are illegal and are aimed to extort US$80 million from the company in "moral damages." The union also said it doesn't seek to have charges dropped against Mr. Gomez, BNamericas states. Grupo Mexico SA de C.V. -- http://www.grupomexico.com/ -- through its ownership of Asarco and the Southern Peru Copper Company, Grupo Mexico is the world's third largest copper producer, fourth largest silver producer and fifth largest producer of zinc and molybdenum. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 29, 2006, Fitch upgraded the local and foreign currency Issuer Default Rating assigned to Grupo Mexico, S.A. de C. V. to 'BB+' from 'BB'. Fitch said the rating outlook is stable. |
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