Chile BHP Spence Copper Mine Workers Begin Labor Strike
October 13 2009 - 8:24AM
Dow Jones News
Unionized workers at Chilean copper mine Spence, owned by global
diversified miner BHP Billiton Ltd. (BHP), went on strike at the
start of the first shift Tuesday.
The mining industry in Chile is closely following this
negotiations process as contracts at several other mines will
expire later this year and in early 2010.
Over a three-day holiday weekend, the 560-strong union voted
against the mining company's latest wage and benefits offer, union
members said.
BHP officials couldn't immediately be reached for comment.
The union and mine management last week agreed to extend the
five-day government-assisted mediation period in the hopes of
reaching an agreement.
Contracts expired Sept. 30. The union sought a 5.5% wage
increase, improved benefits and bonuses totaling 15 million Chilean
pesos ($27,100).
The open-pit Spence mine, which came on line a few years ago,
produced about 165,000 metric tons of copper cathodes last
year.
This is Spence's second collective-bargaining process as
workers. The first was negotiated in 2006 before the mine went into
production.
BHP also owns the Cerro Colorado mine and controls and operates
the Escondida copper mine in Chile. Last week, BHP offered the over
2,000 members of the union at the latter mine an early wage and
benefits package to avoid a possible strike.
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