TORONTO, ON–(Marketwired – February 15, 2017) – Primero Mining Corp. (“Primero” or the “Company”) (TSX: P) (NYSE: PPP) today announced that unionized employees at the Company’s San Dimas mine in Mexico have initiated a strike action, resulting in the complete stoppage of mining and milling activities at the site.
Primero received notification from the National Union of Mine, Metal, Steel and Allied Workers of the Mexican Republic (Sindicato Nacional de Trabajadores Mineros, Metalúrgicos, Siderúrgicos y Similares de la República Mexicana) Sections 21 and 22 of their intention to discontinue work when the parties failed to reach agreement during the negotiation of the Collective Bargaining Agreement (“CBA”).
Primero is not seeking a reduction in individual worker compensation, although the total workforce at San Dimas including contractors will be reduced, a process that has already commenced outside of the CBA negotiations. Primero needs to reduce the scale and complexity of the San Dimas operation in order to increase productivity and return the mine to positive cash flow. Primero’s key focus in these negotiations has been to better align the short-term bonus structure with overall mine-site performance and profitability, and to move the labour force onto a more continuous shift cycle to improve productivity. Primero believes that these are critical changes required at San Dimas to return the operation to profitability.