TORONTO, Sept. 27, 2012 /CNW/ - Just like poor landowners and miners in
Mexico, Canadian shareholders deserve much better from mining company
Excellon Resources, the United Steelworkers (USW) union says.
"Company efforts to identify the United Steelworkers as the driving
force behind the conflict is an attempt to divert shareholder attention
from what we believe are serious management issues at Excellon," said
Ken Neumann, USW National Director for Canada.
"We are communicating directly with Excellon shareholders to document a
litany of management problems that have led to festering conflicts in
Mexico and a depressed share price for shareholders," said Neumann, who
has sent a letter to Excellon's major shareholders.
The USW cites Excellon's breaking of agreements with the Los Mineros
miners' union and communal landowners, related to the company's La
Platosa silver mine in Mexico. The USW is a strong supporter of the
miners' union and landowners and their goal of lifting Mexican
communities out of poverty, although the USW has no legal association
"The United Steelworkers is dedicated to defending workers and
communities against unsavoury practices by Canadian mining companies,"
The USW letter to Excellon shareholders cites numerous troubling
In the last three months, the company's CEO and CFO both departed
suddenly, while the share price has dropped to a three-year low.
Company management reneged on an agreement to recognize and negotiate
with the Los Mineros union.
The company refused to participate in efforts at real dialogue with
workers and landowners despite efforts by Canada's Extractive Sector
Corporate Social Responsibility Counsellor and by Mexican state and
A blockade of the mine by landowners after Excellon management refused
to seek a negotiated solution or to comply with its contractual
Legal action by landowners to rescind their lease of the land on which
the mine operates. This may force Excellon to close the mine or seek
shareholder approval for a takeover.
Allegations of numerous violations of Mexican labour law and threatened
use of force to prevent a free and democratic union election by
A complaint filed with the OECD alleging gross violations of the
Guidelines for Multinational Enterprises, to which both Canada and
Mexico are signatory.
A complaint filed with the Ontario Securities Commission over lack of
"A return very soon to serious negotiations based on mutual respect with
landowners and Los Mineros is the only way to resolve outstanding
issues," the USW letter states.
"Short of this, shareholders may conclude that changes are necessary to
the present management and Board of Directors."
The complete version of the USW letter to Excellon shareholders can be
viewed at www.usw.ca.
SOURCE: United Steelworkers (USW)
For further information:
Ken Neumann, USW National Director for Canada, 416-544-5951
Joe Drexler, USW Strategic Campaigns, email@example.com, 416-544-6009, 416-434-7907
Bob Gallagher, USW Communications, firstname.lastname@example.org, 416,544-5966, 416-434-2221