Share

Chile copper giant strikes

Santiago, Chile - Workers went on strike at Chile's largest copper mine on Monday after rejecting a last-minute pay offer from the state mining company Codelco - the world's largest copper producer.

The century-old Chuquicamata mine in far northern Chile is one of the world's largest open-pit operations and it produces about half of Codelco's output. Codelco as a whole produces about 4% of the world's copper.

Company officials said that more than 2 800 workers failed to turn up for early shifts at the mine on Monday as the strike began.

"We did everything possible to avoid it, but that was not possible and we believe that this is not going to be good for the country," President Michelle Bachelet said.

The company has offered workers a salary increase of 3.8% and individual bonuses of $23 000, noting that the official inflation index rose by less than 1% over the past year.

Union leaders argue that living costs are higher in the region of the mine and they have been seeking a 7.5% pay hike and a $28 000 bonus to match pay for workers at the private Escondida mine owned by the Anglo-Australian consortium BHP Billiton. Codelco says that mine produces more than Chuquicamata with fewer workers.

Monday evening, Codelco sent workers a new offer that included a 4% raise, a $24 280 bonus and a $6 000 interest-free loan.

The company said in a statement that the proposal would be on the table only until early Wednesday, "because after that date it would be very difficult to recoup the losses generated by the strike."

Hernan Guerrero, president of the N3 union at Chuquicamata, said workers would likely vote on the proposal on Tuesday.

"We are going to call an urgent assembly ... to make the offer known," Guerrero said.

Codelco had said it has sufficient inventories to meet commitments for January.

- AP

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.93
+0.0%
Rand - Pound
23.90
+0.0%
Rand - Euro
20.40
+0.1%
Rand - Aus dollar
12.33
+0.1%
Rand - Yen
0.13
-0.0%
Platinum
908.05
+1.2%
Palladium
1,014.94
+1.3%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders