The union representing nearly 2,400 workers at BHP’s Escondida mine in Chile, the world’s largest copper mine, has urged its members to reject the company’s final contract offer and prepare for a potential strike. Union President Patricio Tapia announced that workers will vote from Monday to Thursday on the proposal.
If the contract is rejected, a strike could commence immediately; however, Chilean law allows for five days of government mediation, extendable by another five days if both parties agree. Tapia emphasized that a strike would halt copper production since the union represents 98.5% of frontline operational workers, and the use of replacement workers is prohibited by law.
The union is better prepared for a strike than in previous years, boasting a strike logistics fund four times larger than in 2017, when a 44-day strike significantly impacted production and raised global copper prices.
Workers are advocating for a share of profits, proposing to receive an amount equal to 1% of shareholder dividends over the new contract’s three-year duration. In fiscal 2023, BHP reported $8.6 billion in payouts, translating to about $36,000 for each worker at Escondida.
BHP’s contract offer reportedly includes a bonus of 20 million Chilean pesos (approximately $21,044) per worker, with the company stating that the offer aims to enhance benefits and recognize workers’ contributions.
The union is also focused on improving conditions for workers affected by outsourcing and automation, alongside demands for better health benefits and bonuses. Tensions between the union and BHP have been high due to ongoing disputes over work stoppages, production pressures, and safety concerns.