SANTIAGO – The main workers’ union at the world’s biggest copper mine, Chile’s Escondida, yesterday announced that it has reached an agreement with Anglo-Australian giant BHP to avoid a strike.
The union, which counts more than 2,000 members, said it has obtained “almost unanimous” approval for a new collective agreement proposed by the management, cancelling a strike notice it filed on July 31.
BHP earlier this week said negotiations have ended, “resulting in the final content of the collective contract and closing conditions”. However, the deal had then yet to be accepted by the union.
Neither BHP nor the union published the financial details of the agreement, although the company confirmed in a bulletin that the negotiated conditions will be in force for 36 months.
“This afternoon, after almost unanimous acceptance by our base, we formalised the signing of our new collective contract, which includes the gains obtained during collective bargaining,” said the union.
Local media reported that the deal includes a bonus for each union member of US$23,000 (RM97,460), as well as nearly US$4,000 for extra days worked, in addition to other provisions.
Workers at the Escondida mine announced their intention to strike after insisting their demands for a one-off bonus to recognise their work during the Covid-19 pandemic had not been met.
In 2017, workers staged a 44-day strike – the longest ever in the Chilean mining industry – that caused BHP to lose US$740 million and provoked a 1.3% fall in the country’s gross domestic product.
Chile is the world’s largest copper producer, with 5.6 million tonnes a year that make up 28% of global output, much of which is sold to China, the world’s biggest consumer.
Mining makes up 10% to 15% of Chile’s GDP and half of its exports. – AFP, August 14, 2021
