The five-day strike at Hochshild Mining's four Peruvian silver-gold mines has ended with no impact on the company's 2009 production target of 28 million attributable silver ounces.
In a news release, Hochschild said all four Peruvian mines are now operating at full capacity. Workers had been on strike at the Arcata, Selene, Pallancata and Ares silver-gold mines.
The workers went on strike for a greater share of profits. According to Peruvian law, employees are entitled to a profit sharing of 8% of taxable profit.
However, Hochschild reported a net loss of US$19 million in 2008. Hochschild CEO Miguel Aramburú said the company was not negotiating pay raises, but rather explaining why employees were not owed profits.
In a news release, Aramburú said he was pleased the company reached a swift conclusion to the industrial action in Peru. He added the company will continue to implement rigorous cost saving measures with the aim of reducing costs below 2008 levels.
A company spokesman contacted by Business News Americas Friday was unaware if Hochschild compensated workers in order to end the strike.