Chile Collahuasi Workers, Management To Begin Government Mediation
October 29 2010 - 3:24PM
Dow Jones News
Unionized workers and management at Chile's Dona Ines de
Collahuasi copper mine will begin government-mediated talks later
Friday, a union leader said.
Earlier this week, the 1,551-strong union rejected the company's
most recent contract offer, leading both sides to seek a five-day
government-mediated period.
Should talks fall through, the unionized workers at Collahuasi,
which represent about 90% of the mine's union-eligible workers,
could go on strike on the morning of Nov. 5, Juan Barraza, union
secretary, told Dow Jones Newswires.
Strikes in Chile, especially in the mining sector, tend to be
short-lived, but nonetheless boost copper prices on world
markets.
Local labor laws allow for a second five-day mediation period if
both sides jointly request it.
Barraza said the union wouldn't likely request that period,
opting instead to strike if the company doesn't listen to its
demands.
The sole union at Collahuasi seeks a real wage increase of 10%,
while the company has offered increases of 2% to 3% depending on
the salary, Barraza said.
The union leader says the company isn't open to negotiating, a
claim a spokeswoman for Collahuasi refutes.
"We trust that through the mediation, the union and the company
can reach an agreement on contracts, an agreement that will be
satisfactory to both sides," she said.
The mine, one of the biggest in Chile, 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%.
The mine 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.
If workers go on strike, it will be the second industrial action
for Collahuasi this year. Earlier in 2010, contract workers at the
mine blockaded the access road to the mining compound, forcing the
mine to shut down for several days.
-By Carolina Pica, Dow Jones Newswires; 56-2-715-8919;
carolina.pica@dowjones.com
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