Workers at BHP Group’s giant Escondida copper mine in Chile are set to begin a strike after union leaders said wage talks failed to produce an agreement before the midnight deadline. While there’s still time for a last-minute deal, a union representing more than 1,000 supervisors and staff put out a statement saying talks had broken down and a strike would begin at 8 a.m. local time Wednesday. The stoppage by roughly a quarter of Escondida’s direct employees would threaten supply from the world’s biggest copper mine at a time when the mining industry is struggling to keep pace with demand growth.
Near-record copper prices have emboldened workers to seek a greater share of mining profits while producers seek to contain rising costs. Two unions at Antofagasta Plc’s Centinela mine in Chile are also out on strike. Labor disputes are adding to a string of mine setbacks and weather-related interruptions in the top-producing nation, tightening the outlook for copper supply just as demand is expected to grow with investment in data centers and power grids.
The Escondida supervisors union said it submitted a final proposal incorporating 90% of the company’s proposals and its own key demands, but that management declined to respond. The company’s final offer is valid until midnight local time. Besides higher salaries, the union is seeking a monthly production bonus and changes to performance evaluations.
A proposed signing bonus of around $25,500 per worker, as part of a broader benefits package, is “below market” given the company’s windfall profit, union boss Alexis Barrera said in a text message. Copper futures are up about 38% over the past year.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing