escondida

Chile Escondida union reps to call vote to end strike

31/08/06
SANTIAGO (MarketWatch) -- Striking workers at Chilean copper mine Escondida will vote Thursday whether or not to end the walkout, union and company spokesmen said Wednesday.
As the strike entered its 24th day Wednesday, the two sides resumed stalled negotiations and drew up a so-called "preliminary agreement."
Both BHP Billiton (BHP) spokesman Mauro Valdes and union spokesman Pedro Marin declined to comment on the terms of the agreement.
While neither one would confirm nor deny whether it was based on the company's fourth and sweetened offer, the union leader said the agreement fulfilled all the points the union had sought.
"We had an informal meeting between union leaders and the company's human resource department, from which the union representatives decided to present a proposal to the members," Valdes said.
The union members will meet Wednesday evening to hear the proposal and will vote on it Thursday morning, Marin said
"I can't comment on this preliminary agreement, because we agreed to not divulge it before the union members hear it," said Marin.
However, Valdes said they hadn't presented a new contract proposal.
The company's most recent contract proposal, presented Aug. 20, included a 4% real wage increase, up from its previous 3% offer, and an additional 1.3% increase in the fourth year, if workers signed a four-year contract.
The company also offered contract signing benefits totaling 17 million pesos ($31,600), including a CLP9.6 million market conditions bonus, a CLP3.4 million end of negotiations bonus and a CLP4 million interest-free loan.
The workers rejected that offer in a Aug. 21 general vote, on the grounds that they didn't want a four-year contract, after which talks were severed.
On Tuesday, the company said it had met all its copper delivery contracts to date, but that it would begin rescheduling new deliveries if the strike continued.
The mine's concentrate production is at 50% of capacity, while its cathode production is at 20% of capacity, according to Valdes.
Escondida, the world's largest privately held copper mine, produced 1.27 million metric tons of copper last year in the form of cathodes and concentrates, as well as 182,000 ounces of gold.
Natural resources company BHP Billiton PLC (BHP) controls the Escondida operation with a 57.5% stake, while Rio Tinto PLC (RTP) holds 30%, a Mitsubishi Corp. (8058.TO)-led Japanese consortium 10%, and International Finance Corp. 2.5%.