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Grupo Mexico’s Miners in Peru Strike for Fair Pay

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8 October, 2007

Three weeks after suspending a scheduled 12 September strike, 2,000 copper mining and smelting workers in Peru downed tools on 2 October in an indefinite strike. The strike, against Grupo México’s Southern Copper Corporation, came after the mining and metals federation – ICEM affiliate FNTMMSP – halted strike action after miners voted on 11 September to give government mediated talks a chance to work.

Following the start of last week’s strike, the FNTMMSP called on Labour Minister Susana Pinilla to quicken the dialogue in order to find solutions to unresolved issues. FNTMMSP will mobilise toward a national strike across the mining sector on 5 November unless issues get resolved at Southern Copper and other mining enterprises.

The strike by Peruvian miners at troubled Grupo México instantly raised copper prices nearly 1% on world markets. The strike occurred at Southern Copper’s Toquepala and Cuajure mines, and at its Ilo smelter. Workers are demanding a fair pay package of 11%, while Grupo México seeks longer shifts and proposes a pay offer of less than half of what the union seeks. The company predicts a strike of any duration will cause 2007 production losses to exceed 10%. Southern Copper produces 370,000 tonnes of copper annually from its Peruvian operations.

Southern Copper’s miners took short strike actions in May and June of this year. The company’s chief attack has been to file charges with the government claiming the strikes are illegal.

Grupo México is also fighting miners in Mexico. Since 30 July, Mexican mining and metals union, SNTMMRM, has been striking three operations of the company, including the Cananea copper mine in northern Mexico, near the US border. The other two mines are a silver, lead, and zinc mine, near Taxco in Guerrero state, and the San Martín zinc mine in Zacatecas.

Mexican miners are striking over demands for collective agreements, and better health and safety conditions. Grupo México has responded by announcing mine closures, citing depletion of resources, and seeking to declare the strikes illegal.