Mining giant BHP’s swift resolution to a recent six-day strike at its massive Escondida copper mine in Chile could influence upcoming labor negotiations elsewhere, with workers encouraged by high copper prices to demand a larger share of profits.
Members of Escondida’s powerful Union No. 1 reached an improved agreement on Sunday after walking off the job a week earlier when contract talks broke down. They were pushing for better pay and benefits at the world’s largest copper mine.
By Friday, the union had already reached a preliminary deal, with a union lawyer calling it their “greatest recent victory.” The agreement included a bonus and an interest-free loan of around $34,000 per worker, an increase from BHP’s initial offer of about $28,900.
This quick resolution contrasts sharply with a 2017 strike that lasted a month and a half, significantly disrupting BHP’s production, driving up global copper prices, and even affecting Chile’s GDP, which is heavily reliant on copper.
BHP was keen to avoid a repeat of the 2017 strike, particularly given the strong current demand for copper and high global prices, analysts and experts said. Demand for copper is expected to surge, driven by the growth of electric vehicles and artificial intelligence technologies.
“The memory of the 44-day strike in 2017 loomed large over the negotiations,” said Andres Gonzalez, an analyst at mining consultancy Plusmining. “BHP was motivated to avoid a similar scenario, which pushed them to reach an agreement.”
Gonzalez also noted that the two sides were not too far apart when the strike began, which made finding a compromise easier.
The union’s stance was also strengthened by the perception that BHP had ample financial resources. BHP is one of the world’s largest mining companies, producing over a million metric tons of copper annually at Escondida alone. The company recently pursued a $49 billion bid to acquire Anglo American before withdrawing the offer.
“BHP’s current image is that of a company with capital available for acquisitions or investments in mergers… so the union was determined to achieve its goals,” said Cristian Cifuentes, an analyst at the Chilean think tank Cesco.
Despite occasional strikes, Chile’s mining sector generally manages to renew workers’ collective contracts without conflict and often ahead of schedule, minimizing the risk of production disruptions.
Escondida is unique due to its large scale and powerful union, which represents 2,400 workers, nearly all in key operational roles. The union has a history of clashing with BHP.
“PROFITS MUST BE SHARED WITH WORKERS”
Analysts are now watching to see if Escondida sets a precedent, but they note that other mines in Chile may not be in similar positions, especially smaller operations or those struggling with production and cost issues.
State-run copper giant Codelco, which is working to revive production from a 25-year low, is scheduled for pay negotiations at its Ministro Hales mine in September, followed by talks at the El Teniente and Gabriela Mistral mines in October.
At each of these sites, unions represent a significant portion of the workforce. Notably, at El Teniente, one of Codelco’s largest mines, five separate unions represent over 80% of the workforce, or about 3,200 workers.
“There is concern about how the unions at El Teniente will respond,” Cifuentes said.
Meanwhile, workers from one of three unions at Lundin Mining’s Caserones copper mine in Chile also went on strike a day before the Escondida strike and remain on strike.
“Copper prices have been quite favorable in recent months… Those profits should be shared with the workers,” said Marco Garcia, president of the striking Caserones union, though he acknowledged that the Escondida union faced more “productive pressure.”
“We know that the next three years will be quite profitable for Caserones in copper production,” Garcia added. “That’s what drives our demands for higher wages for our union members.”
Caserones management is scheduled to negotiate with other unions at the site later this year.
Jorge Riesco, head of the Chilean mining association SONAMI, warned that it’s important to balance worker compensation with industry competitiveness.
“It is legitimate for workers to seek better working conditions, but it is also important to consider other factors,” he said. “Labor productivity and industry competitiveness should also be part of the conversation.”
.
#everyday_information #forex #option #Binary_Option #trading #trader #goldstocks #forextrader #fx_trade_time #fxttime #USDollar #euro #JPY #GBP #chfcurrency
#dubai #UAENews #ksasaudiarabia #Syrian #iraq #kuwait #jordan #morocco #Libya #tunisia #algerian #Egypt #qatar #lebanon
#كل_يوم_معلومه #فوركس #خيارات_ثنائيه #تداول_عملات #بورصه #ذهب #فوركس_تريد_تايم #اف_اكس_تريد_تايم #دولار #يورو
#دبي #امارات #السعوديه #سوريا #العراق #الكويت #الاردن #المغرب #ليبيا #تونس #الجزائر #مصر #قطر #لبنان
.
www.fxttime.com/trade