UPDATE: Chile Escondida Copper Workers Accept Early Wage Deal
October 13 2009 - 4:04PM
Dow Jones News
Unionized workers at Chilean copper mine Escondida, controlled
and operated by BHP Billiton Ltd. (BHP), have accepted an early
wage and benefits package, ahead of the 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 that
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 totaling about $25,000, a $6,300
interest-free loan, and various social benefits including an early
retirement plan.
The 44-month contract is unprecedented in recent local mining
sector negotiations, according to industry participants.
"We are very pleased; the near four-year contract opens new
perspectives for labor stability," said BHP Chile spokesman Mauro
Valdes.
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.
Last year, the mine produced 1.26 million metric tons of copper,
a 15.4% decrease from the 1.48 million tons produced in 2007, as a
result of lower ore grades and technical glitches at one of the
mills at its Laguna Seca concentrator plant. Escondida produces
copper in both cathodes and concentrates. It also produces small
amounts of gold and silver.
-By Carolina Pica, Dow Jones Newswires; 56-2-820-4244;
carolina.pica@dowjones.com