- Title: CHILE: Union votes to end strike at the Escondida copper mine
- Date: 1st September 2006
- Summary: (BN05) ANTOFAGASTA, CHILE (RECENT) (REUTERS) MINERS VOTING OVER TERMS REGARDING STRIKE AT "LA ESCONDIDA".
- Embargoed: 16th September 2006 13:00
- Keywords:
- Location: Chile
- Country: Chile
- Topics: Industry,Employment
- Reuters ID: LVAATY0MSU1WSLE51OQTFSLCRT5V
- Story Text: Workers at the world's largest copper mine, Chile's Escondida, voted on Thursday (August 31) to accept a new contract deal and end a strike that sent international copper prices on a 25-day rollercoaster ride.
A union spokesman said the contract would be signed on Friday (September 1), adding that a majority of workers had approved a new salary and wage deal to replace their 2003 contract.
The strike at Escondida polarized opinions in Chile about how much of a share workers should receive of booming global mining profits and came ahead of contract talks at Codelco, the state-owned company that is the world's largest copper producer.
Escondida, owned by the world's two biggest international miners, BHP Billiton <BHP.AX> <BLT.L> and Rio Tinto Plc <RIO.AX>, did not say when the mine would return to full production after the strike cut output in half.
An industry source with knowledge of the mine said full shifts could be reestablished within two days and it probably would take Escondida another week to resume full production.
Workers at Escondida, a giant open-pit mine in northern Chile, accepted a 5 percent wage hike and a special bonus equal to some $17,000.
"Perhaps we could have waited for something more," said union leader Luis Troncoso, "but I think that what we have is the beginning-- so as to prepare ourselves for the next strike or the next negotiations."
Over the course of the strike, which saw sometimes violent demonstrations, the union modified its demands at least twice, coming down from original demands for a 13 percent rise and a $30,000 special bonus.
The Escondida mine, which also accounts for more than 20 percent of Chilean copper production, is set in the mountains of Chile's northern Atacama desert, off the nation's Pacific coastline.
The strike started on August 7, when workers walked off the job to demand a new salary and benefits deal reflecting copper prices near $3.50 a pound, compared to 67 cents a pound when their last contract was signed.
"We're very satisfied of having reached a final agreement today," said mine director Pedro Correa. "We think this process could have developed in a different way, not in a confrontational manner."
Chile is the world's largest producer of copper and the red metal is the driver of its the nation's economy.
Escondida usually produces roughly 3,500 tonnes of copper a day and reported $2.9 billion in net profit in the first six months of the year. - Copyright Holder: REUTERS
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