License to Operate: Main Risk for Miners in Mexico

Q: How have mining companies in Chihuahua interpreted the government’s decree to halt activities to prevent the spread of COVID-19?

A: The decree has generated uncertainty in the state’s mining sector. The way in which companies must implement it is vague, especially regarding the Labor Law. Perhaps the obfuscation is deliberate on the part of the authorities to surreptitiously justify why employees must still be paid even if the company is closed. Business owners are not sure if there would be any legal liability if they were to pay their workers only minimum wages while operations remain suspended. Nevertheless, all mining companies we work with have chosen not to try to interpret the decree. Instead, they have made a commitment to pay their workers full wages for as long as they can. Even