Chilean state-owned copper giant Codelco has reached a collective contract agreement with two workers’ unions representing over 800 employees at its Andina mine, the company announced on Thursday. This agreement, made ahead of the planned deadline, helps avert the risk of a potential strike at the site.
The three-year deal will cover workers represented by the Unified Workers Union (SUT) and the Industrial Labor Integration Union (SIIL), and is set to come into effect this August. Codelco did not provide further details about the specifics of the agreement.
In a statement, Codelco emphasized its appreciation for the “dialogue, good understanding and respect displayed in this process with the unions and their associates.” The successful negotiation of this collective contract helps ensure labor peace at the Andina mine, which produced around 164,500 metric tons of copper last year.
The timely resolution of this labor agreement is an important development for Codelco, as the company navigates a challenging operating environment marked by factors like declining ore grades, rising costs, and growing labor demands. Avoiding potential disruptions at its mines is crucial for Codelco to maintain its position as one of the world’s largest copper producers.
The successful conclusion of this negotiation process with the unions at the Andina mine demonstrates Codelco’s ability to foster constructive labor relations, which will be critical as the company works to modernize its operations and meet its production targets in the years ahead.