Cobre Panama Seeks to layoff 4k workers

Photo of author

By LatAm Reports Editor

In addition to the application for job termination, Cobre Panama opened a voluntary retirement program. The benefits to be paid will be the same in both cases.

The Company Cobre Panama reported on Friday that it has requested to the Ministry of Labor and Labor Development (Mitradel) the completion of at least 4,000 contracts of its collaborators.

According to the mining company, the decision is given after the ruling of unconstitutionality and a formal communication from the Ministry of Commerce and Industries instructing on the completion of metal extraction and processing operations.

In the opinion of First Quantum’s subsidiary, these measures drastically change the situation of its workforce.

The application for job termination will be developed in parallel with the voluntary retirement programme presented on 3 December by the Utramipa union.

Cobre Panama stressed that in both cases the benefits of the collaborators will be the same and the payment of the money that is legally owed to them will be included.

Sign up to receive exclusive content

It warns that the only difference is that the administrative procedure before the Ministry of Labour may take up to two months to be resolved.

The company reiterates that some of the jobs will still be necessary to take the necessary measures and forecasts to maintain the safety of the facilities and avoid environmental loss or damage.

In the midst of the new announcement, Cobre Panama reiterated its willingness to engage in an open and constructive dialogue with the Government to address this and other concerns.

Days ago, the Ministry of Labour and Labour Development had rejected requests for suspension of contracts, saying the time was the completion.

The Minister of Labor, Doris Zapata, indicated that the voluntary retirement plan proposed by the company, which is only a mutual agreement, must respect all the labor rights and benefits that correspond by law.

The workers’ union stressed that it will remain vigilant for those affected to receive a fair and timely settlement.

This article has been translated from the original which first appeared in Pan America