Unionized workers at Chilean copper mine Dona Ines de Collahuasi, one of the globe's largest red metal mines, are voting on the company's final wage offer as union leaders push for a strike, a labor leader said Wednesday.

Collahuasi, one of the largest mines in the world, was forced to shut down earlier this year for several days after protesting contract workers blockaded the access road to the mining compound, resulting in a loss of 11,300 tons of copper contained in concentrates. Also, workers at Collahuasi went on strike for several days in 2007 as the last wage negotiations broke down.

"Voting on the wage offer is expected to be complete late tonight [Wednesday]. Although it already looks like the majority of workers are going to vote for a strike... The company hasn't met our demands. Maybe they prefer to negotiate during a strike," union spokesman Juan Antonio Barraza told Dow Jones Newswires.

The company's offer to the 1,551 unionized workers includes bonuses worth 8.9 million Chilean pesos ($18,305).

"In contract negotiations with unionized workers, voting to go on strike is a legitimate tool. However, both sides have the right to ask for government mediation if that happens, to try to come to an agreement before an actual strike occurs," said company spokeswoman Bernardita Fernandez.

If either side asks for government mediation, talks are extended for another five days. Then, if both sides still haven't reached an agreement, government mediation and talks can be prolonged an additional five days if both company representatives and union leaders request it.

The mine is owned by diversified mining companies Xstrata PLC (XTA.LN) and Anglo American PLC (AAUKY, AAL.LN), each with a 44% stake. A consortium led by Mitsui & Co. (MITSY, 8031.TO) holds the remaining 12%.

Collahuasi produces about 500,000 metric tons of copper a year, or about 10% of Chile's annual output. Chile is the world's leading copper producer, accounting for about 35% of global output.

-By Anthony Esposito, Dow Jones Newswires; 56-2-715-8929; anthony.esposito@dowjones.com

 
 
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