Peru government and miners fail to avert strike
mining-journal.com
Union leaders, congressional representatives and officials from Peru`s government failed on Thursday to reach a deal to avert a nationwide mining strike slated to start on Monday.
The government was hoping unions could be persuaded to call off the walkout as dozens of heads of state will arrive in Peru next week to participate in a summit of European and Latin American leaders. But party leaders in Congress could not reach a deal to pass a bill pushed by unions and the administration of President Alan Garcia, whose approval rating has sunk below 30% as many voters complain they have yet to feel the benefits of a six-year economic boom.
"The strike is on and there is no going back," Luis Castillo, head of Peru`s leading federation of mining unions, told Reuters after meetings in Congress. "There is no consensus among the political parties in Congress that would solve the problem," he said.
Prime Minister Jorge del Castillo said the executive branch requested Congress pass a bill with the biggest of the changes asked for by the unions. "We are in complete agreement (with the unions) about profit sharing, not just for salaried workers but also for contract workers," Del Castillo said as he pleaded with unions to scrap a strike that could spoil the presidential summit.
The strike is aimed at pressuring Congress to pass a bill to lift a cap on profits that mining companies can share with workers. Right now mining companies can pay annual bonuses to workers equivalent to 18-monthly salaries. Unions also want the government to change rules for early retirement, clamp down on outsourcing by companies and give workers the right to enroll in state-run pension funds. In addition, they want the work day cut to eight hours from 12 hours.
Peru is the world`s leading silver producer, ranks second in copper and zinc, and fifth in gold, according to government data. Twice last year, unions went on nationwide strikes, which partially cut output and were watched closely by market players. Though mineworkers enjoy above-average salaries for Peru, they want a bigger cut of windfall profits that metals companies are reaping from lofty international prices.
The average mineworker in Peru earns between US$1,000 and US$1,500 a month, around four times as much as the average wage in Lima, the capital. Some mineworkers also receive benefits for housing, healthcare, food and school tuition.
(Reuters, May 9) |
