Grupo Mexico's Miners Strike at Copper, Zinc Mines Over Wages
Mexico City, March 6 (Bloomberg) -- Miners at Grupo Mexico
SA, the world's third-largest copper producer, began a strike
after they failed to reach an agreement over wage increases,
affecting 3,000 workers.
The strike paralyzes mining activities at the La Caridad
copper mine in the northeastern state of Sonora, the San Martin
Sombrerete zinc mine in north central Zacatecas state and the
Unidad Pasta de Conchos zinc mine in northern Coahuila state.
``This is a complicated fight that has different points of
view,'' said Consuelo Aguilar, a spokeswoman for the National
Mining and Metallurgic Union of the Mexican Republic. Workers want
a wage increase of between 8 percent to 10 percent, while Grupo
Mexico has offered a 5 percent pay raise, she said.
The strike is another setback for the Mexico City-based
company, which is already facing problems meeting its debt
payments because of low copper prices.
Standard & Poor's on Friday downgraded the credit ratings on
Grupo Mexico's three mining units, including its U.S. subsidiary
Asarco Inc. and its Peruvian subsidiary Southern Peru Copper
Corp., because of declining revenue and delays in reaching an
agreement with its creditors to stretch out debt payments.
The credit rating was lowered to ``CCC+,'' seven levels below
investment grade, from ``BB-,'' the New York-based rating company
said.
Company officials weren't available for comment.
--Eduardo Garcia in the Mexico City newsroom at (52-55) 5242-9251
or edgarcia@bloomberg.net. Editor: Borise |
