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8 February, 2010
For third time since management shut the copper, lead, and zinc mining and smelting operations of Doe Run Perú at La Oroya in June 2009, members of a branch of ICEM affiliate National Miners’ and Metalworkers’ Union (FNTMMSP), along with two other unions, agreed to extend the shutdown until 29 April, only this time the 3,200 mines and metalworkers will receive 70% of their salaries and labour benefits.
That agreement was reached late last week and extends an enforced vacation agreement that first went into effect in August 2009. The shutdown then lasted three months with workers receiving 63% of pay, and an extended 90-day negotiated vacation shutdown took effect in November 2009, which saw workers receive 65% of their standard pay. That expired at the end of January.
FNTMMSP Gen. Sec. Luis Castillo Carlos
FNTMMSP General Secretary Luis Castillo Carlos said the union’s number one priority is to reopen the La Oroyo complex in Yauli Province, 175 kilometres east of Lima, with all workers receiving full pay and full benefits. Castillo said the company also agreed to meet weekly with unions to apprise them of financial developments in regard to re-opening.
Doe Run Perú has been hard hit by debt, including money owed ore suppliers and financiers. The Peruvian Congress has given the company until 27 July 2010 to restart, a deadline that also saw the government give a 30-month extension to the American company for environmental clean-up that will cost US$156 million.
The company’s troubles were also compounded early this month when it was expelled from Peru’s National Society of Mining, Oil, and Energy (SNMPE) for violations of three codes of conduct: negligent health and safety conditions for workers, disregard for the environment, and mining exploration that fails to comply with Peruvian legislation. The smelter is known to have caused serious lead poisoning along the River Mantaro.
Doe Run is owned by privately-held Renco Group, a New York-based holding company controlled by industrialist Ira Rennart. Renco also owns AM General, a maker of armored vehicles for military use, and US Magnesium. Its Doe Run affiliate also has lead recycling and processing operations in the US states of Arizona, Missouri, and Washington.
In Peru in 2008, Doe Run’s La Oroya smelter produced 114,259 tonnes of lead, 53,831 tonnes of cooper, and 43,440 tonnes of zinc. The polymetallic smelter also produced a host of minor metals as well.