Newmont Signs New Collective Bargaining Agreement for Peñasquito

Newmont Corporation has reached a new Collective Bargaining Agreement (CBA) with the National Union of Mining, Metallurgical, Steel, and Similar Workers (SNTMMSSRM) for the Peñasquito mine, which will govern the terms of employment from 2024 to 2026. The agreement reflects a mutual commitment to worker rights and operational stability at the mine, which is the largest gold mine in Mexico.

Both parties engaged in a collaborative process characterized by open dialogue, emphasizing the safety and well-being of the workforce, reports Newmont. As part of the agreement, the union reported a salary increase of 7.5% and a 5.89% rise in benefits, including savings funds, assistance bonuses, life insurance, vacation pay, and funeral expenses. The agreement was approved by 96.5% of union members following the completion of the review process.

"This agreement signifies improved income and working conditions for our members and their families," reported the union. The Peñasquito mine is a significant employer in Zacatecas, providing jobs for over 5,000 people, including contractors, and supporting an estimated 28,000 individuals in local communities through its supply chain.

The new CBA comes after a prolonged 120-day strike that began on June 7, 2023, when approximately 2,800 workers demanded increased profit payments. The strike ended on October 16, 2023, following negotiations that highlighted compliance with the previously signed CBA and the need for improved conditions. Newmont agreed to provide an additional bonus for the fiscal year 2023 and to compensate workers for 60% of wages lost during the strike.

After the strike, Newmont emphasized its commitment to maintaining high compliance standards and collaborating with the union to address future challenges, with a focus on individual safety and a culture of cooperation. The resolution of the strike was seen as a positive development for both Newmont and the financial outlook of Zacatecas, particularly after the strike resulted in an estimated loss of over $3.7 million per day and a 72% decrease in gold production in June 2023.