Chilean copper mine labor negotiations frustrated
The labor negotiations for Chile's Antofagasta Mining Company's largest copper mine collapsed! The workers rejected the company's final wage offer, and a strike was imminent.
On Tuesday, local time, the union members of the Los Pelambres mine voted in favor of the strike with 98%. According to Chilean labor rules, the government can also intervene in mediation and make a final effort before the strike begins.
Chile’s mines account for a quarter of global copper production. The country’s mines have recently been involved in a series of labor-management negotiations, and the Los Pelambres mine negotiations are just one of them.
The union stated that the Los Pelambres mine is the group's largest, lowest-cost, and most profitable business, and the salaries of workers do not match their status. A foundation has been established to help more than 400 union members survive the strike.
After the vote, the chairman of the union, Eduardo Escobar, said in a text message to the members: "Without the support of the grassroots, it is difficult to achieve the goal."
Antofagasta Mining Company is owned by the wealthiest family in Chile. Last year, two other mines of the company reached a wage agreement in the last hour of negotiations, avoiding a strike. According to the agreement, the company will award more than $20,000 in bonuses for each worker. Compared to the two mines mentioned above, the Los Pelambres mine is more valuable and has a bigger bargaining chip for bonus negotiations.
According to data from the Chilean government, the Los Pelambres mine produced 372,100 tons last year.
The international copper price reached its highest point in nearly 10 years last month and then fell back, but the current price is still higher than the low point in March by more than 90%. The strike may support the recent drop in copper prices.
