Newmont Reaches a Profit Sharing AgreementBy Fernando Mares | Thu, 07/21/2022 - 15:01
US-based mining company Newmont announced it has reached an agreement on profit sharing with the National Union of Mining, Metallurgical, Iron, Steel and Similar Workers of the Mexican Republic (SNTMMSSRM) at its Peñasquito unit in Mazapil, Zacatecas.
The company announced it reached a the agreement following negotiations headed by Morena Senator and historic President of SNTMMSSRM Napoleón Gómez. Under the agreement, the company agreed to pay its 2,500 unionized employees an uncapped bonus of up to 10 percent, with an immediate cost equivalent of to US$70 million, which is representative of the payments of 2021’s results. The amount of money that every worker will receive will depend on their position, labor seniority and nominal salary.
According to the company, the agreement was reached without strikes and via a respectful dialogue between the company and workers represented by Gómez. The accord will also ensure continued operation at the Peñasquito unit in the future. “We are pleased to have reached this agreement with SNTMMSSRM. Through a respectful dialogue and the active participation of union leadership including Senator Napoleón Gómez Urrutia, we reached an agreement without interrupting the operation,” said Tom Palmer, President and CEO, Newmont.
Napoleon Gómez has headed other important profit sharing negotiations in different states of the country. On June 17, 2022, representatives of ArcelorMittal and SNTMMSRM reached an agreement to call off a strike that started on June 15, 2022. On that occasion, the company announced that after paying out the profit sharing, which was the equivalent of three months of salary in accordance with 2021’s exceptional performance, the company agreed to grant an additional special extraordinary payment equivalent to a year’s worth of salary for the average worker.
MBN reported that the labor disputes are more likely to become a problem for Mexican Mining companies, since workers are requesting higher bonuses on the back of an increase in metal prices and greater production numbers. Changes in the labor legislation have also impacted the industry after the government forbade outsourcing last year. Profit sharing payments were capped at the greater of three-year trailing average payments or three months’ worth of salary. Before the reform, 10 percent of a company’s profit in the country was divided among the workers.
Newmont is a US-based mining company, it has operations in North and South America, as well as in Australia and Africa and is the only gold producer listed in S&P 500 Index. Its Peñasquito operation is one of the most important gold projects in Mexico. It has produced over 50,000oz of gold, which represents 20 percent of the national production of the precious metal.