Affect on future moly pricing...Mexico says no backing down on spiralling strikes
24 Apr 2006 18:41:16 GMT
Source: Reuters
MEXICO CITY, April 24 (Reuters) - Mexico will not back down in a labor battle with striking metals workers that has claimed two lives and crippled output from some of the country's largest metals producers, the government said Monday.
Presidential spokesman Ruben Aguilar said the government would stand firm in plans to prosecute a union boss accused of corruption despite strikes called in his support at major mines and steel plants.
"We will not abandon workers' rights to those who exploit and manipulate them," Aguilar told reporters.
He said there were no plans to remove Labor Minister Francisco Salazar. Union leaders want him fired after two workers were shot dead when police tried to break up a strike at the Sicartsa steel plant in western Mexico last week.
Thousands of workers are striking at mines owned by giant copper producer Grupo Mexico and at Sicartsa in support of union boss Napoleon Gomez, who faces an investigation into allegations that he misused union funds.
Mexico's mining sector has been in turmoil since 65 workers died in an underground explosion at a Grupo Mexico coal mine in February. The incident sparked angry protests over mine safety and the failure of rescue teams to reach the victims.
Many union members are refusing to open strike negotiations unless they are represented by Gomez, who has not been seen in public for weeks.
On Sunday, another 400 Grupo Mexico workers at a silver, lead and zinc mine walked out, joining colleagues from the company's La Caridad copper mine and its Zacatecas zinc mine.
Benchmark May copper futures in New York dropped 2.60 cents to $3.085 per lb on Monday, but traders said the new strike announcement would likely limit losses in the next trading sessions.
The month-long La Caridad strike has heightened world supply fears for the red metal, used in wiring and construction, and helped push prices to record highs.
That stoppage has been declared illegal by the Labor Ministry, potentially clearing the way for Grupo Mexico to fire strikers or to push for a forced eviction.
Grupo Mexico has warned clients the stoppages mean it will struggle to meet copper, molybdenum and and refined zinc contract delivery obligations for May.