SANTIAGO — The president of BHP Billiton Ltd.’s base metals division confirmed the company offered union workers at its Escondida copper mine a “discretionary” bonus to avert a labor conflict.
The sole union at the world’s largest copper mine downed their tools late Thursday to protest what it considers are unmet labor contract terms.
Base Metals division head Peter Beaven said the company, which controls and operates Escondida, offered a 2.8 million Chilean peso bonus outside the collective bargaining agreement but that the 2,375-strong union rejected the bonus and decided to undertake the work stoppage.
“We believe the stoppage to be illegal,” Beaven said, while delivering the company’s annual sustainability report.
Under Chilean labor laws unionized workers can legally strike during contract negotiations. The Escondida union claims the current labor process is an extension of their 2009 collective bargaining and claims the strike is therefore legal.
Beaven said labor concerns should have been discussed between the company and labor union without resorting to a strike.
“It’s a disappointing outcome,” Beaven said.
BHP Billiton holds a controlling 57.5% stake in Escondida. Rio Tinto PLC holds 30% and the remaining 12.5% is held by a Japanese consortium led by Mitsubishi Corp. .
Last year, the open-pit mine located in northern Chile produced 1.086 million metric tons of copper, a 1% drop from its 2009 output.
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