Chile Escondida Copper Mine Workers Accept Early Wage Offer
October 13 2009 - 12:38PM
Dow Jones News
Unionized workers at Chilean copper mine Escondida, controlled
and operated by BHP Billiton Ltd. (BHP), accepted an early wage and
benefits package, ahead of their Dec. 5 contract expiration
date.
The move eliminates the possibility of a strike such as the one
that shut down the copper mine, the world's largest, for nearly a
month in 2006.
"This is historical; it happened without any conflict
whatsoever," said Pedro Marin, the head of the Federation of Mining
Workers and a former Escondida union leader.
The 2,250-strong Escondida union belongs to the federation Marin
heads.
In a vote held over the weekend, about 72% of unionized workers
accepted the unusually long 44-month contract offer, which included
a 5.5% wage increase, bonuses totalling about $25,000, a $6,300
interest-free loan, and various social benefits including an early
retirement plan.
BHP representatives didn't immediately respond to calls seeking
comment on the offer, but a spokesman for the company last week
called the offer "mutually beneficial."
BHP has a 57.5% stake in Escondida. 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