VIEW FROM THE TOP |
CHANGING THE MINING IMAGE IN MEXICO CARLOS PAVĂ“N General Secretary of the National Union of Miners and Metallurgists (SNMM)
Q: How do you think NAFTA renegotiations will affect
a part so the investment is not centralized. It should aim for
mining in Mexico?
more transparency. As its name states, it is a fund that should
A: I think NAFTA is a very relevant issue to consider.
be invested in mines, which is not always the case. The union
Politically the treaty is useful as it allows us to access the US
believes there should be a miners’ committee to allow workers
and Canadian markets but renegotiations need to consider
an opportunity to vote on how the fund is dispersed.
that Mexico does not have the same living conditions as the US or Canada. We must strive to gradually diminish the
Q: How does the union help mitigate the impact supercycles
gap between NAFTA members. It must be gradual because
can have on miners?
many foreign investors chose to come to Mexico because
A: We always try to seek what is best for workers amid
of the low wages, so we cannot suddenly increase them
the ups and downs of the mining cycle. During the last
to regional parity because we would lose FDI. This could
downturn most of the publicly listed companies went out of
impact investment in the country’s mining industry. We
business. Those that survived are mostly privately funded as
cannot risk bringing about more unemployment. I am a
they have a better understanding of the volatility of prices
supporter of creating more employment opportunities in
and how to financially prepare themselves to survive low
Mexico as it is a country that needs to generate more jobs.
prices. Everything that surrounds us comes from mining,
Also, the higher the profits we make in Mexico, the more
so the mining industry must prevail.
income tax increases, which can lead to high inflation rates. The mining industry is a sector that has billionaire profits but Q: What are the key challenges that mine operators face
that also requires a billionaire investment. The equipment
in terms of their workforce?
and procedures to extract ore are expensive, and most
A: A key challenge that mine operators often face is having
machines must be purchased in dollars, which makes them
optimum control of their labor force. The isolation of the
costlier for Mexican companies. Companies should really
mines can lead to unhealthy social situations like addiction
take care of their spending so they can be prepared for
to narcotics. Also, companies often experience losses due to
the impact of volatility. Our goal is to preserve and defend
theft, whether it be in material, capital or ore. These are very
wages to protect workers in this context.
delicate issues and they should be handled with extreme care. Part of our mission as SNMM is to help to prevent and
Q: What are your medium term goals for SNMM?
fight against these situations.
A: Our goal is to be the primary mining union in the country, not only in terms of growth, but also in strength
Q: What kind of relationship does the union have with the
and responsibility. We have 16 chapters representing miners
private sector in the mining industry?
across the country and we democratically-elect leaders
A: We try to foster a positive relationship with private
every two years. Our growth is based on security, labor
companies. We collaborate with the private sector to
stability and benefits for workers, either social or economic.
improve areas that surround the mines by investing in
We are creating campaigns to promote safety to show
football fields and spaces for families to spend time
miners the importance of taking care of their personal
together, among other projects. Collaboration helps us
safety as well as that of their peers.
achieve plans and goals that are adapted to the needs of each local community. The National Union of Miners and Metallurgists (SNMM) is one
Regarding the public sector, I believe the Mining Trust Fund
of the only mining unions in Mexico that is not employer-led.
is a key issue. The main problem is that it is not properly
It has 16 chapters representing miners and works with major
distributed, as the three stages of government each receive
operators to negotiate better working conditions in mines
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