This deal sucks. $NEM is in a trading halt. Newmont Suspends Operations at Its Penasquito Mine in Mexico as Union Threatens to Strike
Today at 03:52 pm
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(MT Newswires) -- Newmont (NGT.TO), the world's largest gold producer, on Thursday said it suspended operations at its Penasquito mine in Mexico after the National Union of Mine and Metal Workers said it will launch a strike to increase the amount of profits shared with employees, despite a labor agreement that expires in June, 2024.
Newmont said the union is asking for an increase in profit sharing to 20% from 10%. Prior to locking out employees, the company said it engaged in negotiations to resolve disputes over the terms of the collective bargaining agreement, including over "an annual profit sharing provision based on a consistent calculation formula".
"The calculation method was previously agreed with the Union and applies the same formula to calculate the profit sharing benefit payments for both 2022 and 2023. On May 30, 2023, Minera Penasquito paid all eligible employees the mutually agreed upon 10 percent profit sharing benefit for 2023, accurately and on time," Newmont said in its release.
The company said it remains willing to meet with the union to reach an agreement "in accordance with the CBA".
The mine produced 129,000 ounces of attributable gold production in 2022.
Newmont shares were last seen up C$0.14 to C$56.21 on the Toronto Stock Exchange.
Price: 56.28, Change: +0.21, Percent Change: +0.37
NCM Price at posting:
$26.34 Sentiment: Hold Disclosure: Held
