VANCOUVER (miningweekly.com) – A group of rogue unionised employees at First Majestic Silver’s La Encantada mine, in Mexico, has formed an illegal blockade, blocking access to the mine and forcing operations to a halt, the company reported on Wednesday.
The rogue workers cited disagreement with the most recent bonus pay-out, instead of profit sharing, as the reason for their actions.The bonus was agreed to by both the company and the National Union.
First Majestic said it did not know for how long the blockade would last, but the company advised that it was working with the National Union to resume operations and have the unionised workers return to work.
First Majestic noted its relatively strong relationship with the National Union, adding that it was working “very diligently with the leadership of the National Union to provide a fair solution for all union employees”.
The company is currently investing in the roaster project at La Encantada, and the mine is receiving more capital investment than any of the six mines this year.
“This is a minor setback in our plans for renewed investment at La Encantada focusing on underground development and brownfields exploration, which will over time result in increased throughput rates and higher head grades,” president and CEO Keith Neumeyer stated.