Chile: BHP reaches agreement with workers and avoids strike at Escondida mine

Chilean BHP company and the leaders of Union number 1 of the Escondida copper mine, the largest in the world, reached an agreement that avoids a strike.

For months, workers have denounced alleged breaches of the collective agreement and violations of labor safety within Escondida.

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Thus, in mid-November, the union organization, made up of more than 2,400 members, announced a stoppage of activities, but finally, days later, decided to deactivate the strike after advancing in talks with the company.

However, the workers’ union once again warned that if their requirements were not accepted by BHP, they would reactivate the strike this Monday and Wednesday; which did not happen because an agreement was reached.

According to a public statement from BHP delivered to the media today, the approved proposal considers an exceptional bonus and for the only time, includes a new “Security Plan” that will be implemented soon.

BHP recognizes the willingness shown by the union leadership throughout all the conversations held during the process, reaffirming that dialogue is the mechanism to resolve discrepancies with their union organizations,” the company said in a statement.

A stoppage of activities posed security risks and a break in operational continuity, the company warned a few weeks ago before the possibility of materializing the action of the workers. “It is detrimental to the economic and social development of the region and the country,” it said on November 15.

A strike in Escondida can mean millions in losses, as happened in 2017 with the 44-day strike that meant a 1.3% drop in GDP in Chile. Only in 2021, the mining company produced 984,000 tons of copper.

With information from Bloomberg Línea