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Following three days of intense negotiations, 2-4 July, South African state-owned electric utility provider Eskom and three trade unions won 2010 wage terms with increases of 9%, plus long-awaited housing allowances. With the threat of a strike looming during the final week of the World Cup &ndash; despite a labour court ruling now on appeal that deemed the entirety of Eskom an essential service &ndash; the company met the unions wage demands in talks before the nation&rsquo;s Commission for Conciliation, Mediation, and Arbitration (CCMA). 
 
The ICEM affiliated unions National Union of Mineworkers (NUM), National Union of Metalworkers of South Africa (NUMSA), and a third union, representing a combined 28,000 workers, are expected to sign the agreement this week, with the across-the board salary increase backdated to 1 June. 
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A major issue throughout bargaining was the housing allowance. In that, a compromise was reached in which workers will receive a R1,500 (US$194) monthly allowance. Entering early July&rsquo;s final mediated bargaining session before workers were prepared to strike, Eskom had an 8.5% wage offer and a R1,000 housing stipend on the table. The unions had demanded R2,500 for housing. 
 
The housing allowance issue was a carry over from last year&rsquo;s bargaining, when Eskom promised to establish a commission by year&rsquo;s end to award a first-ever stipend for staff who work away from home. That never materialized. 
 
Labour unions and management are expected to decide this week when the R1,500 allowance will take effect, with unions arguing it should be backdated. Also this week, talks will continue towards reaching a minimum service agreement, an accord that will determine which Eskom employees are not essential state workers and thus have the right to strike. The unions also have this matter before a labour appeals court. 
 
The NUM represents 16,000 workers at Eskom, while NUMSA represents about 5,000.

Eskom and South African Unions Agree to 9% Wage Hikes

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Seven miners were killed in three separate underground mine accidents in South Africa last week, including five contract workers at Aquarius Platinum&rsquo;s Marikana mine in the Bushveld area near Rustenburg, North West Province. 
 
The other deaths occurred at AngloGold Ashanti&rsquo;s Tau Lekoa gold mine on 7 July, where an explosion took the life the life of a miner, and at Imperial Platinum&rsquo;s Rustenburg mine, where an underground rock slide crushed a worker. Both are also in North West Province, with the Tau Lekoa mine extending into Free State Province. 
 
At Aquarius, two other miners were trapped at the Marikana mine late in the evening of 6 July when a large segment of an underground shaft collapsed. One of those miners suffered serious injuries, while the other was rescued unscathed. Rescue teams from nearby Impala Platinum and a Lonmin mine assisted in the rescue. All workers were employed by Murray and Roberts Cementation. 
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Aquarius has closed the No. 4 shaft of Marikana, which supplies the Australian-based company, the world&rsquo;s fourth largest platinum producer, with 50% of Marikana&rsquo;s production. 
 
The shaft remained closed early this week, and the National Union of Mineworkers (NUM) said it would take its mandatory one-day period of mourning once the mine reopens. 
 
&ldquo;Once this suspension is lifted, we will embark on a day of mourning, which means there won't be any work done at the mine on that day,&rdquo; said NUM spokesman Lesiba Seshoka. 
 
&ldquo;This is a disaster,&rdquo; added NUM General Secretary Frans Baleni. &ldquo;At a time when the industry brags of so-called improved safety, we now have disasters raising their ugly heads again,&rdquo; he added. The NUM has called for a full investigation. 
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NUM General Secretary, Frans Baleni
Impala Platinum&rsquo;s Rustenberg mine death comes 50 weeks after nine miners tragically died at the Lease Mine No. 14 near Rustenburg, which was South Africa&rsquo;s worst disaster in 2009. Impala, the world&rsquo;s number two platinum producer, led all producers in South Africa in mining deaths last year. The country mines and processes 80% of all global platinum, which is used in electronics, catalytic converters, and jewelry. 
 
AngloGold has had a deal in place since 2008 to sell the Tau Lekoa mine to Simmer and Jacks, but internal problems within the latter company has prevented conclusion of the sale.

Seven Die in South African Mining Tragedies Last Week

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With a 75% ratification vote announced late on 7 July, Canadian nickel mining and processing workers represented by United Steelworkers (USW) Locals 6500 and 6200 in Sudbury and Port Colborne, Ontario, ended a 360-day strike against Vale SA. The Brazilian mining company and 3,500 USW members now begin a five-year collective agreement after a contentious strike that ended with both sides compromising on terms in mediated bargaining. 
 
Those terms were pieced together in high-level mediation from 19-22 June in Toronto. But final accord still eluded both sides due to differences in setting forth a just process through arbitration of Vale&rsquo;s unilateral sacking of nine strikers. Over 3-4 July, through the insistence of Ontario Provincial Labour Minister Peter Fonseca, a process was established, opening the way for the 6-7 July contract vote. 
 
Still to be resolved, however, is another strike over a separate labour contract between Vale and USW Local 9508 involving 200 steelworkers in Voiseys Bay and Goose Bay, Labrador. Those strikers have been out since 1 August 2009. The USW and Vale are expected to return to bargaining in mid-July in eastern Canada&rsquo;s maritime province, and resolution appears imminent following the Ontario approval. There, 84% of total membership of the two branch unions turned out last week to ratify. 
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The contract acceptance in Ontario thus closes a chapter to one of Canada&rsquo;s most acrimonious labour disputes, a dispute that saw mining and other unions from around the world galvanize behind the USW in efforts to preserve previously negotiated wage and work terms. The ICEM and the International Metalworkers&rsquo; Federation (IMF) helped coordinate the global campaign. 
 
In a joint statement, ICEM and IMF General Secretaries Manfred Warda and Jyrki Raina said: &ldquo;The perseverance and character of USW members in Ontario and Labrador is what trade unions everywhere will remember about this strike. Their fight became our fight and thus they laid the building blocks on how to wage a coordinated global campaign.&rdquo; 
 
The five-year agreement in Ontario includes yearly wage increases that, coupled with cost-of-living increases, will increase salaries between C$2.25 and C$2.50 per hour over the life of the agreement. The existing defined benefit pension plan for current workers also increases in increments over the contract term, with cost-of-living indexing and life-time health care benefits preserved. 
 
In compromises made by the two sides, a defined contribution pension plan for new hires was agreed to that provides company contributions equal to 8% of employees&rsquo; regular basic earnings, with workers able to contribute additionally between 2% to 6% of regular earnings. This plan includes long-term disability coverage that is the same as that contained in the defined benefit pension plan. 
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The nickel production bonus was retained, although at levels less than the previously negotiated bonus. Workers can still supplement regular earnings by up to C$15,000 per year, with compromise struck on the price of nickel in which the trigger kicks in. The prior trigger of US$2.25 per pound was increased to US$3.75, less than the US$5.00-per-pound originally sought by Vale. 
 
The new contract includes a C$2,000 signing bonus for all returning and retiring employees, with two additional C$1,000 bonuses linked to production numbers in the last one-third of 2010. 
 
It also includes a side agreement setting forth rigid contracting-out criteria, which will serve as a job security measure. 
 
A retirement incentive bonus was negotiated that will give workers with 30 years service a one-time C$30,000 retirement stipend, with C$15,000 granted to those with 27-29 years. A reduction in force was also agreed to of 113 jobs, with those redundancies very likely to come by way of attrition. 
 
The return-to-work agreement calls for Vale to recall USW members beginning in the next to the last week of July, and no later that 11 August. In the separate agreement involving the fate of the nine discharged USW Local 6500 members, the two sides agreed to have the Ontario Labour Relations Board make a determination on whether or not the unjust firings will go to independent arbitration. Those governmental hearings began on 9 July. 
 
In the USW&rsquo;s statement announcing the ratification, District Six Director Wayne Fraser said, &quot;Our members have spoken and I believe everyone respects the decisions they have made in extremely difficult circumstances.&rdquo;

Canadian USW Members Ratify 5-Year Collective Agreement with Vale

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The ICEM affiliate, Turkish Electricity Authority of Cyprus Workers&rsquo; Trade Union (EL-SEN), conducted its General Assembly on 10 July 2010. The assembly was convened under the banner of anti-privatisation in the capital city Nicosia in central Cyprus. 
 
President Tuluy Kalyoncu was re-elected to continue as head of the trade union, with 171 votes, while a second candidate received 24 votes. 
 
The only candidate for General Secretary of EL-SEN, Huseyin Sonmezoglu, was re-elected to that position. The newly elected Executive Board will consist of Turgut Evlat, Ozan Alciner, Subhi Ozpasa, Ercan Koseoglu, Orhan Gurgoze, Ozgur Uzuner, Caglayan Cesurer, Toprak Altay, and Kamil Ozinal. 
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Bulent Erzeybek was elected as Assistant Secretary General, while Suphi Ozpasa was elected Financial Secretary, Ercan Koseoglu Education Secretary, Saffet Asiksoy Foreign Relations Secretary, Huseyin Korkmaz Organizing Secretary, Ozgur Uzuner Social Affairs Secretary, and Serhan Kayar was elected as Secretary of Propaganda. 
 
The General Assembly adopted four resolutions. Delegates resolved to struggle for peace and a solution to the Cyprus problem. Also prioritised was the need to continue education programmes for members. 
 
Delegates adopted a strong resolution against the government&rsquo;s moves toward privatisation of the Turkish Electricity Authority of Cyprus (KIB-TEK). Congress accused the government of misleading the public on the financial condition of the company. 
 
ICEM General Secretary Manfred Warda wrote to congratulate EL-SEN on its successful Congress.

Turkish-Cypriot Electricity Workers’ Take Stand Against Privatisation

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The ICEM-affiliated Mongolian union, the Federation of Energy, Geology and Mining Workers' Trade Unions (MEGM), hosted ICEM General Secretary Manfred Warda and Asia-Pacific Regional Contact Person Phee Jung-sun recently. 
 
Warda commended accelerated development in Mongolia over recent years, noting significantly improved infrastructure in the country. It is positive for the country that foreign investment has increased rapidly, and resource-rich Mongolia can benefit from such investment through exploration and development of gold mines and construction of power plants. Major investors are from Canada, China, and the US. 
 
MEGM President Gambold indicated that union members are facing new challenges through this period of foreign investment. Government and employers are attempting to change current labour laws toward creating a more &ldquo;flexible&rdquo; labour market in order to &ldquo;adapt to the global economy.&rdquo; 
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This means fewer restrictions on temporary work agencies, increasing the numbers of precarious jobs in the country. This is being countered by trade unions of Mongolia, which have created a new working group that will submit a counter proposal to the proposed legislation. 
 
The government is introducing a programme of privatisation of state-owned enterprises in the telecommunication and energy sectors. A number of major investment contracts with foreign companies are due to be signed during the second half of 2010. 
 
The ICEM, working with the local ILO office, the International Trade Union Confederation (ITUC), and other Global Union Federations, will be supplying technical assistance for these critical issues to be addressed, so as to build a firm foundation for sustainable development in Mongolia, in line with ILO international labour standards. 
 
The experiences in many Asian countries, notably Korea and Vietnam, on business contracts with foreign companies are that these foreign companies often demand long-term contracts that are unacceptable with respect to labour protections and profit sharing. 
 
&ldquo;It is my sincere hope and firm belief that Mongolian government should listen to opinions of social partners. Through social dialogue and consensus, the government can build the confidence and mutual faith,&rdquo; stated Warda.

ICEM Shores Up Support to Mongolian Affiliate to Combat Privatisation, Contract Labour

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Thailand&rsquo;s Tripartite Industrial Relations Committee (IRC) ruled that French-based Michelin has violated provisions of the Industrial Relations Act 1975, and ordered that management at the Laem Chabang tyre factory reinstate 12 activists &ndash; members of ICEM-affiliated Petroleum and Chemical Workers&rsquo; Federation (PCFT) &ndash; to their rightful jobs. 
 
The ruling was given on 24 June, but notification and official documentation of the unfair labour practices complaint did not come to the PCFT until 20 July. The12 had been unfairly discriminated against by Michelin since leading a two-month dispute and company lockout at the plant in March and April 2009. 
 
The 12 had been kept on Michelin&rsquo;s payroll, but were assigned to a government-run skills centre in efforts to keep them away from the 1,800-member workforce. They refused the assignments, citing violations of their rights. 
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Standing, center, Michelin plant-level PCFT President Thanakorn Somsin (fist raised) and Secretary Sommoi Prawai (on his left), together with founders of the PCFT branch union 
The IRC ruling orders Michelin to provide work inside the factory to the 12 in positions not lower than their previous postings, and to do so within ten days. 
 
The dispute started when Michelin, in March 2009, attempted to institute 35% wage cut to everyone at the Chonburi Province plant. A petition surfaced protesting the unilateral cuts and managers then punished workers who refused to remove their names from the petition by locking them out of the factory. After unionists blockaded the plant, some were jailed, while Michelin supervisors filed criminal complaints against the union organisers. 
 
Even though tri-partite negotiations produced a partial resolve on 28 April, including recognition of the newly-formed plant union as part of PCFT, Michelin continued to discriminate against union leaders. The recent IRC ruling means that all union activists should be legally reinstated. 
 
Some 700 workers at Laem Chabang have taken up PCFT membership. Michelin has a 90% stake in three Thai tyre plants, the PCFT-represented Phra Padaeng factory in Samut Prakarn, the non-unionised Nong Khae plant in Sarburi, and Laem Chabang. The Siam Cement Group owns the minority shares in the three tyre plants.

Thai Labour Court Orders 12 Michelin Union Activists Back to Work

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US public criticism against a CEO and against his company in the wake of the deadly West Virginia coal mine explosion on 5 April has triggered measures for better and tighter overall workplace safety standards in the US Congress. The proposals stand as the first significant overhaul to the Occupational Safety and Health Act (OSHA) in its 40-year history. 
 
A panel of the US House of Representatives&rsquo; Education and Labor Committee gave approval, with a 30-17 vote on 21 July, to HR 5663, the Miner Safety and Health Act. The proposed legislation would finally put teeth into America&rsquo;s federal safety and health statute, and comes at a time when the US public is angry over the arrogance and power exhibited by companies following job-place deaths and ecological disasters, like BP&rsquo;s Deepwater Horizon explosion and deaths in the Gulf of Mexico. 
 
The lightning rod for the tougher safety standards in the US continues to be Massey Energy and its CEO, Don Blankenship. It was at Massey&rsquo;s Upper Big Branch mine near Montcoal, West Virginia, on 5 April, that a methane gas blast killed 29 non-union miners in a colliery where workers were ignored when they spoke up against poor air quality. Blankenship has used the deaths, contemptibly, to argue for less oversight by the US Mine Safety and Health Administration (MSHA) and more reliance on business instincts in order to improve safety. 
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The proposed legislation is sweeping, and would lift the US statute to the level of some of the best safety laws in the world. OSHA violators could be charged with felony crimes, carrying heavy jail sentences and fines. It would grant expedited hearing, review, and protection in all-important whistle-blower cases, and it would give the US Labor Department&rsquo;s safety agency heightened power to shut unsafe workplaces. 
 
An existing but non-functioning &ldquo;pattern of violation&rdquo; status in the existing law would be given tougher enforcement mechanisms with strong penalties attached, and families and relatives of victims would receive more rights in the proposed legislation. 
 
Also in mining, workers would be given the undeniable right to refuse unsafe work and MSHA would have the power to shut down a mine without waiting for a company&rsquo;s appeals to exhaust, a common tactic used by Massey to continue production after safety violations are issued. At Upper Big Branch, Massey had been repeatedly cited for dust and ventilation problems, but the company&rsquo;s appeals caused penalties to be reduced and safety deficiencies to continue. 
 
Business and industry interests at the committee hearings in Washington, DC, opposed an updated OSHA, saying the proposed revisions are too much, too fast. 
 
That caused United Mine Workers of America (UMWA) President Cecil Roberts to say, &ldquo;If we&rsquo;re asking ourselves, &lsquo;Are we moving too fast?&rsquo; maybe we should ask ourselves if we&rsquo;re moving too slow, because miners keep dyin&rsquo; in our nation&rsquo;s coal mines.&rdquo; 
<img src="" width="100" height="139" alt="" />
UMWA President Cecil Roberts
The increase in US mining deaths to date in 2010 is markedly up, and on a pace not seen since the 1980s when US mining employment was half what it is now. So far in 2010, 40 miners have been killed, nearing the most recent record of 47 in 2006. 
 
Thirty-one of the 40 deaths have occurred at Massey collieries. On 1 July, an electrician was crushed to death by a coal-laden shuttle car inside Massey&rsquo;s non-union White Buck Coal Co. mine in West Virginia. And on 10 May, another miner was crushed between machinery and a longwall at Massey&rsquo;s non-union Ruby Energy mine, also in West Virginia. He died a week later in a hospital. 
 
Besides the BP disaster that occurred in American waters in the Gulf of Mexico on 20 April, killing 11 workers, the updated safety legislation is spurred by the 3 April explosion at Tesoro&rsquo;s oil refinery in the state of Washington that killed seven &ndash; all members of the United Steelworkers (USW) &ndash; and another explosion at a power station of Kleen Energy Systems in the state of Connecticut in February, killing six. These accidents raise among Americans a late-to-arrive consciousness that perhaps the cost of profits over people in a free society has come at too steep a price. 
 
The full US House of Representatives must now take up the safety bill, while the US Senate is standing back awaiting House action before it takes up the legislation.

Massey Arrogance Fuels Tougher Workplace Safety Standards for US

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Thanks to dogged persistence by ICEM affiliate Communications, Energy, Paperworkers (CEP) Union of Canada, the fate of the 133,000 barrel-per-day oil refinery Shell refinery in Montr&eacute;al is still open and subject to sale. Last week, following a second court injunction prohibiting dismantling of the refinery until 10 September, Shell announced it again would negotiate with the Delek Group of Israel over purchase of the refinery. 
 
At stake are the jobs of 500 workers represented by the CEP. In January 2010, Shell announced plans to radically restructure its global downstream operations, including closure of the Montr&eacute;al East refinery by 1 June. 
 
The Anglo-Dutch multinational said it would continue operating part of the site as a terminal and distribution centre for scores of Shell retail outlets scattered across Qu&eacute;bec and Canada&rsquo;s Maritime Provinces. Such continuance, however, would require only 30 workers. 
<img alt="" src="" width="120" height="120" />
The CEP and its Montr&eacute;al branch union, Local 121, has battled relentlessly to find a buyer, as well as to press provincial and federal authorities to keep the refinery operating. Shell rejected bids by potential operators last spring and union members believe Shell wants the refinery shut, with imported petroleum products distributed through the terminal. 
 
On 8 July, a Qu&eacute;bec Superior Court granted the union a ten-day injunction preventing any cannibalizing of the refinery. &ldquo;We believe that maintaining the equipment in good condition until we get satisfactory answers to our questions about offers to but the facility&rdquo; is in everybody&rsquo;s best interests, said Local 121 President Jean-Claude Rocheleau. 
 
On 16 July, that injunction was extended into September. Meanwhile, last week on 20 July, Shell stated at a federal parliamentary hearing of the House of Commons that it re-open talks with Delek, a holding company in which its wholly-owned subsidiary, US Holdings Inc., operates a crude pipeline, refinery, and hundreds of gasoline retail outlets in the southern US. 
 
Delek had been an earlier bidder for the refinery, but Shell rejected the bid as too low. The ICEM remains hopeful that CEP will succeed in achieving sale of the refinery, preserving jobs for the union&rsquo;s energy workers. Shell operates two smaller Canadian refineries, in Sarnia, Ontario, and in Edmonton, Alberta.

CEP Fights to Keep Shell’s Montréal Oil Refinery Operating

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In the rush to get copper production from the Cananea mine back on world markets, is Grupo M&eacute;xico disregarding the safety and health of contract workers? So it seems by an apparent undocumented rash of on-the-job accidents and injuries in the short six weeks since federal police opened the mine in Sonora State for the company. 
 
Following a 16 July accident in which a sub-contract worker was hospitalised after a five-metre fall, military police secured the perimeter of the hospital, not allowing anybody to enter. When leaders of Section 65 of the Mexican National Miners&rsquo; and Metalworkers&rsquo; Union (SNTMMSRM) tried to lend assistance to the injured worker, they were turned away by &ldquo;a violent and arrogant grenadier,&rdquo; according to a report. 
 
Workers of Los Mineros at Cananea claim there have been 20 such accidents with injuries since mine rehabilitation began following the military takeover on 6 June. But this cannot be confirmed because safety reporting, if it exists, is never verified. This non-transparency at a major copper recovery project is a pox on Grupo M&eacute;xico and a pox on federal Labour and Interior Ministries, and on the State of Sonora, the latter governmental agencies that have all taken up reconciliation roles. 
<img alt="" src="" width="220" height="148" />
Federal police violently take control at Cananea, 6 June 
Photo - IMF
The pitiful irony is that Grupo M&eacute;xico and federal police used brute force to reopen the Cananea mine on 6 June, crushing a strike that began over health and safety in 2007. Now they are at breakneck pace, using disposable contract workers, to re-start Cananea at a time &ndash; during first quarter 2010 &ndash; that world copper supply fell short of refined usage. 
 
In a media interview in late June, Grupo M&eacute;xico&rsquo;s Isaac Lopez Arzola, the director-general of Southern Copper&rsquo;s Mexicana de Cobre S.A., which functions as the company&rsquo;s copper operating and servicing subsidiary, said 700 workers are now employed at the mine, all non-direct to Grupo M&eacute;xico and Southern Copper, and the responsibility of individual contractors. That number is expected to climb to 1,700. 
 
Compared to a global investment strategy totaling US$2.8 billion, Grupo M&eacute;xico is spending only US$114 million to bring Cananea into production, rushing to get it done by first quarter 2011 to meet continued high copper prices. In turn, Southern Copper will double its global copper output over the next few years, making it the world&rsquo;s third largest copper producer. 
 
With copper prices doubling in early 2010 over copper pricing in early 2009, and considering that every 1% jump in the copper price equates to an estimated 1.3% rise in Grupo M&eacute;xico&rsquo;s equity value, should the company concern itself with safety, or the injuries of non-direct workers? 
 
Apparently not, except to surround them with militia so their stories cannot be heard.

Grupo México’s Infamous Safety Legacy Lives on at Cananea

Some 2,000 Mexican federal troops used force last night to gain control over the Cananea copper mine. The federal police used tear gas and executed arrest warrants for union leaders of Section 65 of ICEM-affiliated Mexican National Miners&rsquo; and Metalworkers&rsquo; Union (SNTMMSRM) in northern Sonora state. 
 
Mexican troops overtook striking miners at 20h00 on 6 June at the gates to the mine. Reports early this morning said that troops stormed Section 65&rsquo;s union hall early on 7 June, also tossing tear gas that dispersed women and men present inside the building. 
 
The ICEM today issued another letter to Mexican President Felipe Calder&oacute;n, insisting that he &ldquo;stop the violent actions taken yesterday and today by your government against trade union members and their families.&rdquo; (The full letter can be seen <a href="/wp-content/migration/icem/64.ICEM.Emergency.Cananea.7June.pdf">here</a>.)
<img alt="" src="" width="90" height="109" />
It was the second time that the ICEM has sent a letter to Calder&oacute;n urging him to use restraint in this volatile labour dispute. In February 2010, the ICEM and International Metalworkers&rsquo; Federation (IMF) cautioned Mexico against using force to break the strike. 
 
The arrest warrants that arrived last night were for Section 65 Secretary-General Sergio Tolano Lizarr&aacute;go and Juan Guti&eacute;rrez Ballesteros, a National Executive Member of SNTMMSRM, or Los Mineros. 
 
The Cananea copper mine, owned by Grupo M&eacute;xico, has been shut since April 2007 when 1,200 miners began a strike over health and safety concerns and trade union rights. 
 
The ICEM is calling on trade unions to send a similar letter to the Mexican government as the one linked above, or use the model letter <a href="/index.php?id=5&amp;la=EN&amp;doc=3840">here</a>.

ICEM Calls on Mexico to Halt its Violence at Cananea

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