Changing the Mining Image in Mexico

Q: How do you think NAFTA renegotiations will affect mining in Mexico?
A: I think NAFTA is a very relevant issue to consider. Politically the treaty is useful as it allows us to access the US and Canadian markets but renegotiations need to consider that Mexico does not have the same living conditions as the US or Canada. We must strive to gradually diminish the gap between NAFTA members. It must be gradual because many foreign investors chose to come to Mexico because of the low wages, so we cannot suddenly increase them to regional parity because we would lose FDI. This could impact investment in the country’s mining industry. We cannot risk bringing about more unemployment. I am a supporter of creating more employment opportunities in Mexico as it is a country that needs to generate more jobs. Also, the higher the profits we make in Mexico, the more income tax increases, which can lead to high inflation rates.
Q: What are the key challenges that mine operators face in terms of their workforce?
A: A key challenge that mine operators often face is having optimum control of their labor force. The isolation of the mines can lead to unhealthy social situations like addiction to narcotics. Also, companies often experience losses due to theft, whether it be in material, capital or ore. These are very delicate issues and they should be handled with extreme care. Part of our mission as SNMM is to help to prevent and fight against these situations.
Q: What kind of relationship does the union have with the private sector in the mining industry?
A: We try to foster a positive relationship with private companies. We collaborate with the private sector to improve areas that surround the mines by investing in football fields and spaces for families to spend time together, among other projects. Collaboration helps us achieve plans and goals that are adapted to the needs of each local community.
Regarding the public sector, I believe the Mining Trust Fund is a key issue. The main problem is that it is not properly distributed, as the three stages of government each receive a part so the investment is not centralized. It should aim for more transparency. As its name states, it is a fund that should be invested in mines, which is not always the case. The union believes there should be a miners’ committee to allow workers an opportunity to vote on how the fund is dispersed.
Q: How does the union help mitigate the impact supercycles can have on miners?
A: We always try to seek what is best for workers amid the ups and downs of the mining cycle. During the last downturn most of the publicly listed companies went out of business. Those that survived are mostly privately funded as they have a better understanding of the volatility of prices and how to financially prepare themselves to survive low prices. Everything that surrounds us comes from mining, so the mining industry must prevail.
The mining industry is a sector that has billionaire profits but that also requires a billionaire investment. The equipment and procedures to extract ore are expensive, and most machines must be purchased in dollars, which makes them costlier for Mexican companies. Companies should really take care of their spending so they can be prepared for the impact of volatility. Our goal is to preserve and defend wages to protect workers in this context.
Q: What are your medium term goals for SNMM?
A: Our goal is to be the primary mining union in the country, not only in terms of growth, but also in strength and responsibility. We have 16 chapters representing miners across the country and we democratically-elect leaders every two years. Our growth is based on security, labor stability and benefits for workers, either social or economic. We are creating campaigns to promote safety to show miners the importance of taking care of their personal safety as well as that of their peers.