The union is set to reject BHP Group's (BHP.US) new contract, threatening to shut down the world's largest copper mine.
AInvestMonday, Jul 29, 2024 7:40 am ET
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Escondida copper mine, owned by BHP Group, is the world's largest copper mine in Chile. The union's president said the union had called on its nearly 2,400 members to reject the company's final contract offer and prepare for a strike.

The Escondida copper mine in Chile, owned by BHP Group, is the world's largest copper mine. The union's president, Patricio Tapia, said the union had called on its nearly 2,400 members to reject the company's final contract offer and prepare for a strike.

“We are better prepared than ever. We have a significant strike fund, four times the size of the 2017 strike. We also have a credit agreement that will allow us to meet the basic needs of workers and their families for a long time.”

Tapia said workers were proposing that they would receive a payment equivalent to 1 per cent of the company's shareholder dividend, to be paid over the three-year term of the new contract.

In the fiscal year 2023, BHP said it paid Escondida $8.6bn, or $36,000 per employee. “We have the right to expect that workers share in the profits,” Mr Tapia said, adding that record copper prices had made Escondida a “very good business”.

BHP did not disclose many details of its contract offer, other than a proposal to give each worker a bonus of $2mn (€21,044).

BHP said its offer would increase benefits and introduce new ones.

The company said in a statement: “Through this latest proposal, the company hopes to reach a new agreement that recognises the contribution of the workers and allows us to address the challenges of Escondida in a sustainable way.”

Mr Tapia said the union also wanted to improve the conditions of workers who had lost their jobs because of outsourcing and automation, and for health benefits, bonuses and so on.

There have been repeated clashes between the union and BHP over issues such as safety, production and the pressure to increase output.

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