The Escondida workers union launches strike demanding larger profit share, impacting global copper prices

From Investing.com: 2024-08-13 23:36:05

A powerful workers union at the Escondida mine, which produced almost 5% of the world’s copper in 2023, has launched a strike to demand a bigger share of profits. Negotiations will determine the impact on global copper prices. The union has a history of successful strikes dating back to 2006.

With 2,400 members, the Escondida union makes up 61% of the mine’s workforce and controls 98% of frontline workers. This gives them significant bargaining power as Chilean law prevents the company from replacing striking workers. They have strong financial reserves to sustain a strike.

BHP’s contingency plan involves allowing non-unionized workers to continue production during the strike. The smaller strike at Lundin’s Caserones mine is less likely to disrupt production. Copper prices remain stable for now due to weak demand from China, though this could change if the strike drags on.

The Escondida union is requesting 1% of shareholder dividends be distributed to workers, approximately $35,000. In 2021, they negotiated a bonus of $23,000 with nearly $4,000 in overtime bonuses. BHP has offered a $28,900 bonus this time, signaling a potential resolution to the dispute.



Read more at Investing.com: Could a union halt production at the world’s biggest copper mine? By Reuters