Summary
Southern Copper Corporation (SCCO) reported an important development regarding its subsidiary, Industrial Minera México, S.A. de C.V. (IMMSA). On September 1, 2010, the Federal Labor Court approved the termination of the collective bargaining agreement and individual labor contracts for unionized workers at IMMSA's underground Taxco Unit. This court ruling, which stems from the mining union's refusal to allow experts to explore for reserves, is expected to lead to the termination of the strike at the Taxco Unit. While IMMSA anticipates the union will appeal this decision, the ruling represents a significant step in resolving the labor dispute. Investors should monitor any appeals and the potential impact on Taxco Unit operations.
Key Highlights
- 1Federal Labor Court approves termination of collective bargaining and individual labor contracts at IMMSA's Taxco Unit.
- 2Termination is linked to the mining union's resistance to reserve exploration by experts.
- 3The ruling is expected to end the strike at the Taxco Unit.
- 4The mining union is anticipated to appeal the Labor Court's decision to federal tribunals.
- 5This event could lead to the cessation of labor disputes at the Taxco mine.
- 6The company is awaiting the outcome of potential appeals.