Orla Mining Ltd. (TSE: OLA) (NYSE: ORLA) moved closer to ending a work stoppage at its Camino Rojo mine in Mexico after a meeting with union representatives and federal labour officials produced an agreement that the ongoing blockade is illegal.
The company said Thursday that all parties agreed the blockade falls outside the collective bargaining process. Additionally, Mexico’s Department of Federal Labour Conciliation confirmed the blockade should be removed.
Orla met with representatives from the Sindicato de Beneficio de Minas union and federal labour authorities on June 3. The meeting had originally been scheduled for June 2.
During the discussions, labour officials instructed union leaders to communicate to members that they must lift the blockade. Furthermore, the agreement was formally ratified by the labour authority.
According to Orla, union leadership has begun informing participating workers that operations should return to normal by the evening of June 4.
The blockade has temporarily suspended activities at the Camino Rojo mine in Zacatecas, Mexico. However, the company said it remains focused on restoring safe operations while continuing discussions with employees.
Negotiations over productivity bonus payments remain at the centre of the dispute. Meanwhile, both sides have agreed to resume those talks once normal mine operations restart.
Orla said it remains committed to reaching an agreement through established labour processes. Additionally, the company stated that future negotiations will proceed within the framework recognized by Mexican labour authorities.
Chief executive officer Jason Simpson welcomed the progress made during the meeting. He said the company looks forward to bringing employees back to work and restoring normal operations at the mine.
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Company has kept political bodies informed
Simpson also indicated that management intends to continue good-faith discussions regarding productivity bonuses. Furthermore, he expressed optimism that both sides can reach an agreement that benefits workers and the company.
According to Orla, maintaining uninterrupted operations supports employees, nearby communities and local businesses that depend on the mine’s economic activity.
The company has also kept municipal, state and community leaders informed throughout the dispute. Orla said those discussions focused on protecting the site’s safety standards, environmental responsibilities and economic contributions.
Labour officials have now formally advised the union that the blockade should end. Consequently, union leadership has acknowledged the direction and agreed to communicate it to members.
Orla emphasized that it respects the labour and union rights of its workforce. However, the company also stated that it expects all activities at the site to comply with Mexican law and internal policies.
If workers do not remove the blockade as agreed, Orla said it will pursue additional measures to restart operations. Subsequently, the company plans to coordinate any further actions with labour authorities.
The company did not provide a timeline for when mining activities could fully resume if access to the site is restored.
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