March 15, 2016

Cerrejón and Sintracarbón sign a new collective bargaining agreement 2016–2017

Cerrejón and its majority trade union Sintracarbón reached an agreement on all the terms in order to sign the new Collective Bargaining Agreement that will be in force for 2016 to 2017. This brings an end to the labour conflict and confirms the willingness of the parties to come to an understanding through dialogue and agreement. The new agreement maintains and increases worker benefits despite the difficulties experienced in the coal market.

With the signing of this agreement, each beneficiary will receive the sum of COP 7,200,000 on his next pay check, corresponding to the two-year term and an advance on the quarterly productivity bonus for the first year, for a total of COP 10,581,472. The wage increase shall be 7% for 2016 and the CPI + 0.23% for 2017. We also achieved importance advances in Educational Aids and in promoting improvements to the healthcare services provision. “I appreciate the teams of the company and the majority trade union for keeping these negotiations on a footing of respect and cordiality.

This two-year agreement allows us to focus all our efforts on making the necessary adjustments in productivity and costs to ensure our viability during this critical situation in the industry and this company,” commented Roberto Junguito, CEO of Cerrejón. In addition, the company is grateful for the good offices of the Ministry of Labour, which provided significant support to facilitate an understanding between the parties and a successful conclusion. The step taken today demonstrates the commitment of Cerrejón and its workers with the company’s sustainability, with our clients, and with the sustainable development of La Guajira.