Chile BHP Spence Mine To Seek Government Mediation In Contract Talks
October 01 2009 - 10:44AM
Dow Jones News
Management at BHP Billiton Ltd.'s (BHP) Spence copper mine in
Chile will seek a five-day government-supervisied mediation period
in its contract talks with unionized workers, a spokesman said
Thursday.
Copper workers at several mines are closely following these
talks as they could set a precedent for other negotiations
scheduled for later in the year, union leaders have said.
Late Wednesday, the union at the mine unanimously voted in favor
of a strike after rejecting the company's latest contract
offer.
According to local labor laws, a strike could not begin until
Oct. 8, following the end of the mediation period. A strike could
still be averted as a second five-day mediation period can be
sought, but must be agreed to by both sides.
Contracts for the 560 unionized workers, which represents about
95% of union-eligible employees and 65% of the total mine
workforce, expired Wednesday.
Spence workers are seeking a 5.5% wage increase and several
other benefits and bonuses. The company offered a cost-of-living
increase and smaller benefits than the workers sought.
The open-pit mine, located in northern Chile, produced about
165,000 metric tons of copper cathodes last year.
This is Spence's second collective bargaining process as workers
negotiated in 2006 before the mine went into production.
In addition to Spence, BHP owns the Cerro Colorado mine and
controls and operates the Escondida copper mine in Chile. The
latter will begin wage negotiations later this year.
In 2006, when copper prices were booming, Escondida workers went
on strike for nearly a month, bringing the world's largest copper
mine to a standstill as they sought higher wages and production
bonuses.
-By Carolina Pica, Dow Jones Newswires; 56-2-820-4244;
carolina.pica@dowjones.com