The more than 2,000 striking of mining workers at the Chilean copper mine La Escondida entered their third week of labour stoppage with no end in site. Mine owners broke off negotiations 8 days ago and began searching for replacement workers but it has been unable to get production going. La Escondida owned by the Anglo-Australian mining conglomerate BHP Billiton is the world’s largest copper mine in the world producing 8 percent of the world’s copper.
The Government brokered talks ended when mine executives called off talks in an effort to get the mine back into production after the union rejected by an overwhelming majority the last contract offered by BHP Billiton.
Then La Escondida with the aid of Chile’s pro business labour legislation after 15 days of strike cancelled all collective bargaining negotiations. After two weeks of workers’ stoppage, the legislation gives a company the right to bargain individually with each striking worker. La Escondida, union leaders say this is a tactic to break the miners' union, but reports indicate the strike remains strong.
Union leader Pedro Marin calls the strike historical and says it is the rebirth of the mining union movement silenced after the 1973 military coup. Marin says they have the support of other mining unions, but warns that miners need to be responsible in their demands because Chile's economy and success is owed largely to its commodities.
Despite the legal protection to get production going, hire new miners, BHP Billiton has been unable to get production in line with the small pool of available labour; and Today La Escondida announced it is negotiating with clients to let them know of delays in delivery of the mineral.
Two weeks ago, the miners’ union forced the shut down of production after La Escondida was unable to get supplies and a workers’ shift change to the mine.
The miners are demanding a 13 percent pay increase and a one-time bonus of some 30 thousand dollars, per worker, because of the high price of copper in world markets. They also demand pay benefits because they have to work 4-day shifts under a harsh environment at 3,100 metres in the Andes Mountains. La Escondida is offering only 3 percent increase in wages.
La Escondida, according to industry experts, is losing US$ 16 million a day, and last year the mine had record profits of US$ 2.5 billion dollars.
