BHP Group successfully negotiated a wage agreement with its supervisor union in Chile.
The deal is crucial as it avoids a work stoppage at Escondida, the world’s largest copper mine.
Announced by the Melbourne-based company, this agreement was finalized on the last mediation day.
However, it still requires approval from union members. To seal the deal, BHP plans to extend mediation by one day to draft and sign the new contract.
If union members give their nod, the mine will continue to operate without disruption. This is significant because Escondida accounts for 5% of global copper production.
Before this agreement, more than 900 workers rejected an earlier proposal from BHP.
They criticized the company for cutting benefits and offering subpar bonuses, triggering the need for formal mediation.
Meanwhile, the mine remained functional during the negotiation period, despite its past history of extended strikes.
Background
The successful wage negotiation marks a pivotal moment in Chile’s often volatile labor environment.
Escondida has a notorious past filled with strikes, making this successful negotiation noteworthy.
The mine is not just a cornerstone for Chilean industry but also holds sway over global copper markets.
If Escondida had shut down, it could have led to an uptick in worldwide copper prices, affecting industries from construction to electronics.
The workers’ initial rejection of BHP’s offer indicates the negotiations’ complexity and difficulty.
Labor disputes in Chilean mining have been contentious for years, usually revolving around wages, benefits, and working conditions.
More: Chile news in English, every day from The Rio Times.
Live Market IntelligenceChile — Live Market Board
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Chile — Live Market Board
+0.68%
168,498.45
+1.39%
71,393.57
+0.43%
10,536.40
+0.68%
2,848,945
—
2,485.26
+0.03%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IPSA | 10,536.40 | +0.68% | — | 10,465.25 | 10,617 | 10,511 | — |
| USD/CLP | 975.74 | -0.29% | +3.43% | 978.59 | 983.51 | 973.55 | — |
| COPPER | 6.24 | -0.18% | +26.33% | 6.25 | 6.29 | 6.19 | 72,116 |
| SQM-B | 56,400 | +1.95% | +27.31% | 55,320 | 57,399 | 55,850 | 140,429 |
| COPEC | 6,375 | +0.55% | -6.66% | 6,340 | 6,484 | 6,375 | 309,623 |
| BSANTANDER | 79.42 | +0.40% | +15.13% | 79.10 | 79.80 | 78.68 | 51,840,894 |
| FALABELLA | 6,504 | +0.08% | +10.15% | 6,499 | 6,638 | 6,490 | 1,013,398 |
| ENELAM | 83.00 | +1.84% | -7.57% | 81.50 | 83.30 | 81.51 | 17,256,424 |
| CENCOSUD | 1,670 | +3.09% | -42.21% | 1,620 | 1,745 | 1,646 | 4,439,480 |
| CMPC | 898.00 | -0.77% | -33.54% | 905.00 | 909.16 | 888.78 | 1,783,541 |
| BANCO CHILE | 189.10 | -0.31% | +11.24% | 189.69 | 193.80 | 189.10 | 27,761,140 |
| LATAM AIR | 23.36 | +1.79% | +12.69% | 22.95 | 23.60 | 22.35 | 1,230,444,191 |
| SOUTHERN COPPER | 167.27 | +1.14% | +28.43% | 165.38 | 168.83 | 164.77 | 1,127,963 |
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief