Grupo Mexico controls Cananea, union fights on

MEXICO CITY, Aug 18 (BestGrowthStock) – Grupo Mexico said on
Wednesday it is still in full control of its Cananea mine and a
court decision won by the national miners’ union is not valid
for the resumption of a strike at Mexico’s biggest copper pit.

The union, which went on strike at Cananea nearly three
years ago, said last week a state court granted workers an
appeal to reverse their eviction from the installations in
June.

But the company and Mexico’s Labor Ministry says the appeal
has no bearing on the mine’s operations, which are in the
process of being cleaned and repaired to resume copper output
by the end of this year or the beginning of 2011.

“(The court) issued a suspension that cannot be applied,” a
company spokesman said on Wednesday.

The company retook control of the mine, with the help of
federal police, when workers lost a long-running court battle
with the company.

Grupo Mexico (GMEXICOB.MX: ) argued Cananea was in force
majeure because of damages from disuse and sabotage, which gave
the company the right to terminate contractual obligations with
the miners.

The most recent appeal won by the union in Sonora, where
the mine is located in northern Mexico, is to block “the
imminent eviction of the plaintiffs from their place of work,”
the Labor Ministry said.

“The Court determined that the suspension granted has no
effect if the (eviction) had already been implemented,” the
Ministry said in an Aug. 12 statement in response to the
appeal.

The government and the company both say the union’s
contract remains suspended.

The union says the legality of the strike has not been
resolved in court and pledges to continue its fight at Cananea.
Unionized workers have tried to block the entrance of contract
workers into the mine.
(Reporting by Jason Lange; Writing by Mica Rosenberg; Editing
by Gerald E. McCormick)

Grupo Mexico controls Cananea, union fights on