U.S. And Mexico Agree Newmont Peñasquito Must Reinstate Two Fired Workers With Full Backpay
The plan covers a Zacatecas mine accused of retaliating against union activity, with all actions due by October 28.
The U.S. Trade Representative's office and Mexico announced a remediation plan on Friday for Newmont's Peñasquito mine in Zacatecas, under which Mexico is to ensure the mine reinstates two workers with full backpay and benefits. The plan is meant to let workers freely exercise union and collective bargaining rights, and all remediation is due by October 28.
What the mine must do
Under the signed course of remediation, dated October 21, Mexico is to ensure the mine offers the two workers their jobs back. Those who accept get the same position and full backpay and benefits. Those who decline get full severance.
The mine must also hand out hard copies of a neutrality statement and guidelines on freedom of association and collective bargaining to all employees and contractors. It must apply a zero-tolerance policy for violations, including penalties for supervisors and human resources staff who break the rules.
The company must publicly acknowledge its "unlawful and interfering practices" through postings at the facility and meetings with workers. It must also train all personnel and keep an anonymous, confidential complaint line open. Before the plan, the company had already posted a neutrality statement and set up a complaint mechanism, the USTR said.
Mexico's own obligations
Mexico is to review and facilitate the reinstatement and severance process, and issue its own press release acknowledging the denials of rights. Its labor secretariat is to run in-person worker training and monitor the facility. Mexico is also to impose sanctions, including financial penalties, on anyone found to have violated Mexican labor law at the site.
Mexico must provide evidence of each action within a week of its due date. The two countries will consult when the plan expires and are to try to decide within 30 days whether implementation was adequate.
How the case got here
The Interagency Labor Committee, co-chaired by the U.S. Trade Representative and the Labor Secretary, received a petition on May 13 from Los Mineros, a Mexican mining union. It alleged Peñasquito retaliated against workers for union activity, including through unlawful dismissals.
The committee found sufficient, credible evidence of a denial of rights. The Trade Representative then asked Mexico to review the matter, Mexico agreed, and the plan followed its investigation. It was agreed under the rapid-response labor mechanism of the U.S.-Mexico-Canada trade agreement.
The October 28 deadline is the first test: by then the two workers must have received reinstatement offers, and the consultations on adequacy follow.
Sources
- United States and Mexico Announce Course of Remediation at Minera Peñasquito — Office of the U.S. Trade Representative
- Newmont Penasquito - Course of Remediation — Office of the U.S. Trade Representative
- Adjusting Imports of Wind Turbines and Their Parts and Components into the United States – The White House — whitehouse.gov
- KOOTENAY WELCOMES MARK SMITH AS TECHNICAL ADVISOR FOR LA CIGARRA PROJECT DEVELOPMENT — prnewswire.com
- READOUT: Secretary of the Treasury Scott Bessent’s Meeting with President Santiago Peña of Paraguay | U.S. Department of the Treasury — home.treasury.gov
- Treasury Issues Proposed Rule to Implement Comprehensive Outbound Investment National Security Act | U.S. Department of the Treasury — home.treasury.gov
