Codelco Union Says Greater Strike Threat at Mine 2006-11-16 09:37 (New York)
By Heather Walsh
Nov. 16 (Bloomberg) -- Codelco, the world's biggest copper
producer, faces a greater chance of a strike at its largest mine
after efforts to reach an early wage accord failed, a labor
union leader said.
The largest workers union at the Chuquicamata mine in
northern Chile last night rejected a company offer that included
a bonus of 8 million pesos ($15,140), said Hector Roco, a
director at the union. Roco said there's a large gap between
workers' demands and what the company is willing to spend.
``Workers' expectations are very high,'' he said in a phone
interview today from near the mine.
Government-owned Codelco has until year-end to reach an
agreement with workers to avert a strike. The failure to reach
an early accord is a setback to the Santiago-based company's
efforts to cut the risk of a strike that disrupts supply. Labor
protests in Chile and Mexico reduced production of the metal
this year, helping to spur a 64 percent gain in prices.
Codelco had sought a settlement before a formal wage
negotiation process begins as early as Nov. 17 with the largest
union, which represents about 2,680 workers. The company had
also offered a wage increase of 3.8 percentage points over
inflation.
Codelco will begin separate talks tomorrow with two other
unions at the mine representing about 3,174 workers, said
Armando Silva, a director at the mine's second-largest union, in
a phone interview. The mine has about 6,526 workers in total,
based on figures provided by its unions.
``Expectations aren't outside of the context of what the
company can provide,'' Silva said. ``We can't talk about a
strike because we haven't started talks yet.''
Codelco's communications office at its northern division,
which includes the Chuquicamata mine, declined to comment on
wage negotiations. The division's two mines produced almost half
of Codelco's copper in the first nine months of this year.
--With reporting by Matthew Walter in Santiago. Editor: Jameson. |
