Newmont And Mexican Union Reach Agreement To End Peñasquito Gold Mine Strike

Newmont Corporation NEM has reached an agreement with the National Union of Mine, Metal, and Allied Workers of the Mexican Republic to end the strike initiated by the union on June 7, 2023.

The strike occurred at the company’s Peñasquito mine located in the Mexican state of Zacatecas. 

The union had demanded the company pay additional profit sharing, equivalent to double the amount agreed upon one year ago. The Mexican Labor Court approved the agreement that was submitted by Newmont and the union on Oct. 13.

As part of the separate, annual wage negotiations under the Collective Bargaining Agreement, Newmont and the Union have agreed to an 8% wage increase.

Newmont will pay employees a fixed amount, roughly equivalent to 60% of wages lost, since the strike began on June 7, 2023.

If the Peñasquito mine reports no profit in 2023 due to the strike, then Newmont agrees to pay an additional bonus in Q2 next year.

"We will continue to honor our commitments, comply with the law and the Collective Bargaining Agreement, and work to protect the long-term value of Peñasquito," said Newmont's President and Chief Executive Officer Tom Palmer.

Price Action: NEM shares are trading higher by 1.19% at $39.89 at the last check Monday.

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