The union at the world's largest copper mine Escondida in Chile has signed an agreement with BHP, easing concerns about a hit to global supplies of the metal.
The three-year deal included changes in labour conditions such as "initiatives to optimize shift changes, increase equipment utilization and compliance with the 40-hour law," according to BHP’s statement cited by Reuters. An internal union message asked members to return to work.
The union, which represents about 2400 people, began the strike on August 13 after failing to reach a deal over wages. BHP's statement didn't provide any further details on the deal with the union, but sources at the company and the union told Reuters that BHP offered workers around $32,000 as a bonus and an additional $2,000 in soft loans.
The negotiations between the union and the company have been tense since the beginning of August. After the close of regular talks, the union at the Escondida mine voted against the terms of a new wage contract.
After that, BHP requested a 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. Nevertheless, the union went on strike which lasted just 3 days before the agreement could be reached.
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, Managing Editor, Rough&Polished
