Labour Relations In The Mining Sector

• Law Firm: lus Laboris
• Subject Matter: Employment and HR, Energy and Natural Resources, Employee Rights/ Labour Relations, Mining
• Author: Mr Ricardo Valdiviezo Puescas (Vinatea y Toyama) and Andrea Villanueva Begazo
• Published date: 30 May 2023

Last February we published a study on labour relations in the mining sector. Here we summarise the main conclusions gathered from talking to the sector's leaders.

The mining sector in Peru is highly unionised. One in four workers members of a trade union, and workers in medium and large companies are, in most cases, represented by at least one union.

Last February we published a study on labour relations in the mining sector, which included an analysis of employment figures, regulatory analysis, dispute resolution criteria and a survey of 25 human resources leaders in large and medium-sized mining companies. Here we summarise the main conclusions, as well as the areas for improvement that we gathered from talking to the sector's leaders.

First, the mining sector, in figures, has the lowest rate of labour informality among the main sectors in the national economy, with 54.4% (20 points below the national average). However, it is one of the sectors in which informality has important environmental, social, economic and political effects. This relationship between a low level of informality and a high level of severity in terms of its consequences is a good indicator of what is at stake in promoting a sustainable and compliant mining industry.

In terms of formal employment, two characteristics stand out. Mining is the sector with the highest rate of unionisation and it this gives rise to a significant number of disputes before SUNAFIL and the courts. Therefore, good labour relations and good labour-law practices are not minor concerns. Indeed, they may even be more critical than in other sectors.

As we have said, around one in four workers are unionised and almost all medium and large companies have at least one union. On the other hand, before dispute resolution bodies, we see striking figures for a sector that only represents 3% of (formal) national employment. Mining disputes are among the most likely to be fined by SUNAFIL at second instance. Before the courts, the number of lawsuits filed by mining companies is significant. Mining is not the sector with the most inspections or lawsuits, but it is one in which conflicts tend to reach the courts and, in the case of SUNAFIL, in which inspections often lead to a fine.

This situation is compounded by increasing regulatory pressure. At the end of last year, Congress had already presented bills to implement approximately 100 new labour standards. For its part, the previous government issued two important...