Workers at the world's No 3 copper mine, Chile's Collahuasi, put down their tools over unmet labour demands on Saturday, compounding worker unrest as a strike at top global copper mine Escondida entered a ninth day. Workers at Collahuasi voted to strike for 24 hours, but may extend the stoppage if the mine operator fails to address their demands, union leader Jacqueline Cerda told Reuters.
Repeated labour action in top copper producer Chile has fuelled supply worries and spurred global copper prices. Escondida, majority owned by BHP Billiton, extracts 7 percent of the world's copper, while Collahuasi accounts for 3.3 percent. However, the strike at Collahuasi, owned jointly by Xstrata and Anglo American, appeared to be an isolated example of contagion feared by markets, as unions at other mines said they have no plans for immediate stoppages. The Collahuasi union said on its online newspaper that workers are angry over the way their production bonuses are calculated and believe they should be larger.
"Just like in Escondida our union workers are very distrustful and are asking their leaders for more action to address their demands," the online publication read. A Collahuasi mine operator official was not immediately available for comment and it was not clear if output at the mine had been affected by the labour action.
Collahuasi and Escondida extract nearly a third of all the copper mined out of Chile. Escondida workers on Friday rejected a new compensation offer from BHP, but acknowledged they were close to a deal and were deadlocked over a bonus demand. Collahuasi workers say they have separate issues, which also include bonuses.
Labor negotiations in Chile have turned more volatile in recent years as worker demands have increased with copper prices near record highs. Collahuasi workers staged a 32-day strike six months ago over a new wage contract - the longest labour stoppage ever at a major private mine in Chile. The mine has been beset by a series of labour protests, accidents and bad weather that has curbed its output.
Higher copper prices have emboldened workers from Indonesia to Zambia and Chile to demand a bigger slice of the record earnings of global giants like BHP, Freeport McMoran and Anglo American. The Escondida strike took Chile by surprise, coming outside the collective wage agreement process, and is seen raising the possibility of more unpredictable labour action.
The strike came on the heels of a 24-hour workers stoppage by state copper giant Codelco, where unions demand a bigger say in the restructuring of the world's top copper mining company. Escondida has declared force majeure - a clause that frees it of liability for shipment delays - on most of its output this week. It said the length of the force majeure hinged on the strike.