Grupo Mexico Workers' Strike at Mine Declared Illegal [View All]

http://www.bloomberg.com/apps/news?pid=20601086&sid=aaFmFu.8pJg8&refer=news

By Andres R. Martinez

Jan. 11 (Bloomberg) -- Grupo Mexico SAB, the country's largest mining company, won its bid to have a five-month strike at its Cananea copper mine declared illegal after losing $600 million in sales.

Mexico's labor board ruled today that the strike can't be allowed because the 1,500 workers at Cananea didn't follow proper procedure when they walked out July 30, according to a statement from Mexico's Labor Ministry. The workers were ordered to return within 24 hours.

``We expect production to resume soon,'' said Juan Rebolledo, a Grupo Mexico vice president, without giving a specific date.

Grupo Mexico is now a step closer to opening Cananea, Mexico's largest copper mine. The company has been plagued by walkouts since 2006, with workers demanding more pay and better conditions. Striking employees at the San Martin zinc mine and Taxco silver mine aren't affected by today's ruling.

Police used tear gas to remove workers today who blocked an entrance with a truck, Rebolledo said. No one was injured and there were no other reports of violence, he said. The union said some workers were injured. Dozens of workers have since returned to work, Rebolledo said.

The union will appeal the board's decision, spokeswoman Carmen Romero said. The chances of the court siding with the union are much smaller this time, she said.

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