The powerful union at BHP’s Escondida copper mine in Chile, which produced nearly 5% of the world’s copper in 2023, is currently on strike, aiming to disrupt production and secure a larger share of profits. The union has a history of effectively striking, previously causing significant spikes in global copper prices during past walkouts.
The Escondida union, representing about 2,400 workers (approximately 61% of the workforce), has strong financial reserves and is protected by Chilean legislation that prevents the company from replacing striking workers. This combination of factors grants the union considerable bargaining power.
In the past, the union has successfully halted operations, including a notable 44-day strike in 2017 that led BHP to declare “force majeure,” impacting its ability to fulfill contracts. The union’s leadership asserts that they are prepared for a prolonged strike, having accumulated four times more funds than during the previous strike in 2017.
The current situation hinges on how quickly negotiations can resume and lead to a resolution. If the union continues to exert pressure, it could significantly affect BHP’s operations and the global copper market.