Gammon Gold Fires 397 Mexican Mine Workers

LOS ANGELES (AP) — Gammon Gold Inc. shares tumbled Thursday after the company said it fired 397 union workers and is in the process of filing criminal charges against seven union executives in the wake of labor disruptions at its El Cubo mine in Mexico.

The Canada-based mining company said the mine has been plagued by "unacceptably low union productivity" and untenable financial demands from employees. As a result, Gammon has suspended operations at the mine indefinitely.

"The ongoing challenges caused by the relentless distractions of union labor disruptions and sub-optimal performance have rendered the El Cubo mine uneconomic and any further investments, including management's time and effort, are not justified," said Rene Marion, Gammon Gold's president and chief executive.

On June 3, Gammon said union workers had forced a work stoppage at the mine, barring contract workers and union members from entering the El Cubo mine site.

U.S.-traded shares of Gammon fell 80 cents, or 10.6 percent, to $6.72 in afternoon trading. The stock has ranged from $6.07 to $12.63 over the past year.

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