UPDATE: Chile BHP Escondida Offers Workers Early Contract
October 09 2009 - 10:42AM
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, a
BHP spokesman said Friday, confirming a local newspaper report.
In 2006, unionized workers went on strike for nearly a month,
bringing production to a standstill while contract talks dragged
on.
Escondida 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 new
contract offer is for an unusually long 44-month period.
It offered the longer contract "because it's mutually
beneficial," according to the spokesman.
The unionized workers will vote through the weekend on the
offer, he said.
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