Workers of BHP Group’s Escondida project in Chile, the world’s biggest copper mine, rejected the company’s wage offer at the close of regular talks, now pending mediation by the government to avoid the strike.
Members of the main union at the Escondida mine voted against the terms of a new wage contract, according to a statement from the group cited by Bloomberg.
In a statement, BHP said that operations continue to function normally and that the company will request the mandatory mediation period allowed under Chile’s collective bargaining rule before a strike can begin. That period includes five business days of mediation, which can then be extended for another five days if both sides agree.
The company has since requested mediation by the Chilean government with the union, noting that the mine is operating normally and that it would aim to achieve a contractual agreement for the mine’s workers.
The union has demanded that 1% of dividends to be distributed equally among workers, but declined to comment on the company’s request for mediation.
Copper production at Escondida surpasses 1 million tons a year, about 5% of all the world’s mined copper. BHP owns more than half of Escondida, while Rio Tinto and JECO Corp control minority stakes.
Theodor Lisovoy, Editor in Chief, Rough&Polished
