Cormidom, a Chinese-owned mining company, announced the suspending of zinc and copper mining operations at the Cerro de Maimón mine in central Monseñor Nouel province after not reaching agreements with the miners’ syndicate. The employees expected more cash in their annual bonuses. In 2022, the company was affected by a mining accident that cost millions of dollars in the rescue effort but ended with a good outcome for the workers. The incident affected the company’s profitability and annual bonuses were reduced.
Company president Paul Marinko said that as a result of the extreme and force majeure situation in which the company finds itself and to safeguard the integrity of its employees and future operations, the shareholders of Corporación Minera Dominicana (Cormidom) announced the suspending of production at the mine. Only maintenance activities will continue.
“With regard to the situation presented with the Cerro de Maimón Mine Workers Union (Sitracema), Cormidom continues to bet on a quick solution through dialogue and mutual respect, while trusting in the mediation of the authorities of the Ministry of Labor. And we reaffirm our commitment to the people of Maimón and the surrounding communities”, said Marinko when making the announcement.
The president of Cormidom stated that since the beginning of its operations in 2009, the company has put the workers and their families at the center of each of its actions.
Marinko indicated that Cormidom supports and respects the union rights of its employees, and therefore has a long-standing, open, close relationship and dialogue with Sitracema, with which mutual collaboration agreements in the areas of salary improvements, health insurance, working conditions, support for education, funeral expenses, maternity and paternity leave, among others have been signed throughout the years.
He stated that since 2010 there has been a collective bargaining agreement with the union that is renewed every three years.
He referred that the most recent one dates from 2020, a time when “we were in the middle of the pandemic and the shareholders not only negotiated a collective agreement but continued to pay 100% of the salaries to the employees even when the mine was closed for eight months, paying RD$304,906,718.38 in payroll in that period.”
Marinko explained that, in light of the collective bargaining agreement, RD$29,515,498.88 corresponding to 2020 bonuses were paid in April 2021. He indicated that during the 2018-2022 period, Cormidom has paid RD$54,365,967.49 in bonuses.
“In the interest of continuing to support the welfare of our workers and their families, in November 2022, Cormidom began negotiations with the union for a new collective bargaining agreement. However, last year the company was closed for approximately five months, which obviously had a high financial impact. Thanks to the teamwork and the unionization of all, shareholders and workers, the company achieved benefits, but not those aspired by shareholders and employees,” he said.
Marinko said that on 27 April 2023, in compliance with the collective bargaining agreement provisions, Cormidom paid RD$8,245,214 for the bonus corresponding to the year 2022.
Regarding Cormidom’s financial situation, he stated that for the company to continue operating, the shareholders had to send US$2,000,000 per week, which means US$105,000,000 for the payment of salaries and other operating costs of the company that year.
He added that the global financial crisis has limited the solidarity support of Cormidom’s shareholders. “And like many other multinationals, Cormidom’s shareholders have even been forced to close two mines in Australia,” said a press release.
Marinko guaranteed that Cormidom has always been characterized for conducting its operations honestly and transparently, complying with its obligations under the laws, particularly those contained in the Mining Law 146-71, the Environment Law 64-00, and the Labor Code and the Collective Bargaining Agreement.
Read more in Spanish:
Listin Diario
Cormidom
15 May 2023