Chile Collahuasi Workers Accept Wage Offer, Strike To End Shortly

Unionized workers at Chilean copper mine Dona Ines de Collahuasi late Tuesday voted in favor of the company's contract offer, putting an end to one of the longest strikes in recent memory.

On the 32nd day of the strike, the union representing 1,551 Collahuasi workers voted 521 in favor, out of 921 ballots cast, of putting an end to the industrial action.

Over 220 union members had broken away from the strike earlier and returned to work.

A person close to the talks said the union accepted a 42-month contract, which included a 3.25% real wage increase, an interest-free loan of 2 million Chilean pesos ($4,176), and a contract signing bonus of CLP12 million. This was a very similar offer to the one the company presented as its final offer when the strike began on Nov. 5.

Collahuasi spokeswoman Bernadita Fernandez said the union members would return to work in the next day or so "depending on their shifts."

Following local labor laws, the results of the vote must be registed with the regional Labor Department before workers can officially return to their posts.

Union leaders weren't immediately available for comment.

Despite the length of the strike, Collahuasi has been meeting its copper contracts, sending out several shipments to clients in Europe and Asia.

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

It is one of the world's largest copper mines and is located 185 kilometers southeast of the port of Iquique, high in the Andes mountains at 4,400 meters above sea level.

Collahuasi produces about 500,000 metric tons of copper a year, or about 10% of Chile's annual output. The South American nation produces a third of the world's copper.

-By Carolina Pica, Dow Jones Newswires; 56-2-715-8919; carolina.pica@dowjones.com

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