Mexican president pressures Canadian miner over union dispute (updated)

Americas Gold and Silver

17/03/2021 23:16

(Adds response from Americas Gold and Silver)
    MEXICO CITY, March 17 (Reuters) - Mexico could revoke a
concession held by Canadian miner Americas Gold and Silver Corp
 USA.TO  in northern Mexico if it does not accept its new trade
union representation there, President Andres Manuel Lopez
Obrador said on Wednesday.
    Speaking at a regular news conference, Lopez Obrador said he
would direct his foreign minister to speak to Canadian officials
about the dispute playing out at Toronto-based Americas Gold and
Silver's San Rafael mine, located in Sinaloa state.
    Lopez Obrador, a frequent critic of the mining sector's
footprint in Mexico, said the company had rejected the outcome
of a vote by workers at the mine to put labor representation
under the control of a national miners trade union led by a
close ally of his who also serves as a ruling party senator.
    Americas Gold and Silver needed to honor the result or it
would be failing to uphold Mexico's labor laws, Lopez Obrador
said.
    "This shouldn't be understood as a threat or even a
warning," said the president, who has vowed to strengthen the
rights of workers in Mexico. "But if they don't respect the law,
the government can revoke the concession."
    Later on Wednesday, Americas Gold and Silver responded to
the president's remarks, saying it was the victim of "extortion
and organized crime" that has masqueraded as a workers' rights
issue for over a year.
    It pointed to a detailed chronology on its website, where it
argues its mine has been victimized by an illegal blockade.
    "If, and when, safe access to our facilities can be assured
for our employees and we are free from the source of this
extortion scheme that threatens us all, we would be happy to
engage in any kind of labor discussion," the company said in a
statement.
    Americas Gold and Silver's collective bargaining agreement
with its workers expired a year ago.
    The company said Lopez Obrador's comment about the possible
cancellation of its concession was "concerning," but expressed
confidence that there is no legal basis for such action.    
    Lopez Obrador was responding to a question from a reporter
about the dispute, and did not mention the company by name.

 (Reporting by Sharay Angulo; Additional reporting by Jeff Lewis
in Toronto; Editing by Aurora Ellis, David Alire Garcia and
Richard Pullin)
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