Chile BHP Escondida Mine Offers Workers Early Contract -Paper
October 09 2009 - 9:24AM
Dow Jones News
Chilean copper mine Escondida, controlled and operated by BHP
Billiton Ltd (BHP), offered unionized workers an early contract and
benefits package to avoid a possible strike later in the year, La
Tercera newspaper reported Friday, citing unnamed sources.
In 2006, unionized workers went on strike for nearly a month,
bringing production to a standstill while contract talks dragged
on.
BHP officials weren't immediately available to confirm the
report, but a union leader familiar with to the negotiations, who
asked to remain anonymous, confirmed the offer.
The newspaper reported that Escondida offered the 2,250-strong
union a 5% wage increase as well as bonuses and an interest-free
loan totalling almost $30,000 per worker. Current contracts expire
Dec. 5.
The unionized workers will vote through the weekend on the
offer, the newspaper reported.
Escondida, the world's largest copper mine, is controlled and
operated by BHP, which has a 57.5% stake. Anglo-Australian mining
company Rio Tinto PLC (RTP) holds 30%, with an additional 10% held
by a Japanese consortium led by Mitsubishi Corp. (8058.TO) and the
remaining 2.5% by International Finance Corp. (IFC.KW), the
private-sector unit of the World Bank.
-By Carolina Pica, Dow Jones Newswires; 56-2-820-4244;
carolina.pica@dowjones.com