Two weeks before deadline, collective bargaining continues with uncertain outcome

When there is only two weeks of negotiations to conclude an agreement between the union and the company for the new labor contract of Minera Escondida, the largest mine of copper of the world, there is no way out. For this process, which meant last year 44 strike days, shook the global copper market and left huge economic losses for the country. The attention of the mining industry is also on this negotiation since it will also be a reference for the other mining companies that will occur during this year, both in the country and in the region . This situation may also put pressure on the price of copper for the next fifteen days

Minera Escondida, controlled by the Anglo-Australian BHP Billiton, must renew the labor contract of the Union No. 1 which expires at the end of July, with little time More than a year after the failure of a work agreement that led to the historic strike of 44 days last year.

According to the union press release, up to now, they have reached an agreement on a

The union submitted its claims to BHP on June 1. The proposal provided for a one-time premium equal to 4% of earnings in 2017 or up to almost $ 40,000 per worker, depending on the exchange rate and other factors. The union also called for a 5% wage increase for its workers, as part of a list of requests of about 60 points.

BHP's initial response released on June 11 does not mention salary adjustments or the bonus of the contract. But the company's vice-president of corporate affairs, Patricio Vilaplana, said the bond "is outside of what the industry was paying for."

An examination of the conflicting points suggests that negotiations are still far from an agreement, the leader Carlos Allendes told Reuters, while from Escondida they say that there is always the place to reach an agreement, which implies that the negotiations should intensify with more meetings in the coming days. On the other hand, the company started a communication offensive by meeting with the mayor of Antofagasta and participating in community contribution programs, which was criticized by the union leaders. Escondida, emphasizing that the company must first and foremost ensure the well-being of its people.

The scenario has become more complex this year for the company. In 2017, the workers postponed the process by invoking a legal provision allowing them to extend the current contract until July 2018. This has worked in their favor since the ongoing talks are being held under the new law of Work that allows workers The carryover also resulted in a sharp increase in the price of copper at the London Metal Exchange, which has increased by more than 40% since it has reached a minimum of nine. years in 2016, which favors union demands.

Although the price of copper fell in recent weeks to almost a year or more, the union said it did not weaken their requirements, since the volatility of the value of the metal would obey transient factors and the cost of Escondida would amount to a little more than a third of the current price of the raw material.

Unions have paved the way for the union to begin negotiations with claims that include a bonus of up to US $ 40,000 per worker.

BHP called this amount "exaggerated" and even exceeded union demands in 2013 When copper prices reached record levels, the higher price of copper, although highly volatile during recent weeks, and the characteristics of the new labor laws suggest that the union has a substantial market advantage. ongoing negotiations in Escondida

Joaquín Villarino, president of the Mining Council, points out that a substantial premium is not necessarily an obstacle to reaching an agreement because it can be used to once to eliminate or replace certain benefits that are permanent. "You have to pay a price to get out of these benefits and, therefore, I think you have to be careful not to judge a high bonus, because that may have a justification," he adds.