Lepanto resolves labor dispute

Lepanto Mining Corp. announced yesterday that the labor dispute at its mine site has already been resolved with the intervention of the Department of Labor and Employment (DOLE) which granted an increase in salary to employees.

In the disclosure to the Philippine Stock Exchange, Lepanto said the salary scale approved by DOLE is above normal industry standard which the mining firm is now implementing.

Despite the return-to-work order issued by DOLE, Lepanto said operations at its mine site have not quite returned to normal due to the insistence of the Lepanto Employees’ Union (LEU)that the company reinstate the union officers and members who led and participated in the illegal strike.

"Nevertheless, the supervisors are continuing to work. An increasing number of LEU members are returning to work and a number of contractual employees have been hired," Lepanto said.

Lepanto said it is continuing to look at the option of hiring new employees.

The company’s workers went on strike last May due to a deadlock in negotiations for pay increases. They specifically asked for a P27 salary increase for the first year, P27 for the second year and P40 for the third year, and other benefits such as the supply of liquefied petroleum gas and two sacks of rice every year.

Just last month, Zijin Mining Group Co. Ltd., the largest gold producer in China, expressed interest in investing in Lepanto. Zijin is listed at the Hong Kong Stock Exchange.

Last year, Lepanto produced 96,070 ounces of gold, up seven percent from the previous year’s 89,420 ounces.

The company incurred a net loss of P43.05 million in the first quarter this year, largely due to lower sales and increasing finance cost. This was a reversal from the P57.21 million profit reported in the same period a year ago.