Loading ...The Torex saga in Mexico continues: Work contracts ended amid blockade
Canada’s Torex Gold Resources (TSX: TXG) announced that it has suspended employment contracts for its workforce in Mexico in response to a blockade at its El Limón-Guajes mine, located in the state of Guerrero and one of the richest open-pit gold deposits in the country.
“This suspension is the direct result of an illegal blockade of its ELG Mine, by the Los Mineros Union, an outside union that wants to take over representation of the employees who already have a union. Since the blockade began, on November 3, 2017, the Company has continued to pay its workforce, except for the minority that has participated in the illegal blockade,” management said in a press release.
The news wasn’t expected given that company officials have kept track of who is taking part in the blockade and they estimate that it is only 30 people. It came as a surprise as well because just four days ago, Torex organized a consultation process and 274 of the 520 people eligible to participate agreed upon aborting a 40-day long strike that was also taking place as part of the conflict with the union.
But the suspension of the employment contracts became effective on December 16, 2017, and only a few in charge of managing the miner’s ongoing responsibilities won’t be affected.
In the media statement, however, Torex offered a way out. “If the blockade is removed by the end of day on December 20, 2017, the Company will reconsider the employment contract suspension. Otherwise, it simply cannot continue paying employees as it has been since the beginning of the illegal blockade. It is not financially feasible.”
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