Chile Collahuasi Sweetens Wage Offer In Hopes Of Ending Strike

Chilean copper mine Dona Ines de Collahuasi sweetened its wage and benefits offer in the hopes of ending the labor strike that entered its 13th day Wednesday.

The company hopes some of the 1,551 striking unionized workers will break away from the industrial action and negotiate individually.

"It's important to point out that this is the last, final and definitive offer the company will make for workers to end the strike," the company said.

According to labor laws, workers who downed their tools can break away from the walkout on the 15th strike day, return to work and negotiate contracts individually. For Collahuasi workers, this could happen Friday.

Collahuasi union leaders have repeatedly declined to answer or return calls for comment.

The union recently said it would fine its members around $10,000 for breaking the strike. The mining company recently filed charges against the union to halt this fine on the grounds that it breaks local labor regulations.

"The company will integrally back its workers so that this fine isn't charged and won't reduce their salaries or benefits as part of these contract negotiations," the mining company said in a statement.

Collahuasi, one of the biggest copper mines in the world, 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--located 185 kilometers southeast of the port of Iquique, high in the Andes mountains at 4,400 meters above sea level--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 Carolina Pica, Dow Jones Newswires; 56-2-715-8919; carolina.pica@dowjones.com

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