Dispute over pay, benefits prompts Morococha mine strike

[How business journals discuss strikes, -ed.]


Pan American Silver reported Friday that union workers at its Morococha Mine in Peru began a strike after the Vancouver-based miner and union representative failed to reach agreement regarding an increase in base pay and benefits. In a news release, Pan American said, “Contract workers are currently carrying out underground mining operations at a reduced rate while the company attempts to resolve the matter. Meanwhile, discussions with union representatives and the Ministry of Labour continue in an effort to reach a new collective agreement.” Pan American believes the impact of any potential disruptions at Morococha will not materially change the company wide production forecast of 21.5 million ounces of silver this year. Morococha is an underground polymetallic mine 50 kilometres southwest of Pan American’s Huaron mine.  To make the best of the time during the reduced mining output, the company is performing scheduled maintenance on the mill. Repairs to a crack in the shell of the primary rod mill will require a short-term stoppage that may also interruption production. However, the repairs may coincide with the downtime that might result from the strike.


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