The union representing workers at the Escondida copper mine in Chile, the largest in the world, has signed a new three-year agreement with BHP, effectively ending a potential strike that could have disrupted global copper supplies.
The deal includes improvements in labor conditions, such as initiatives to optimize shift changes, enhance equipment utilization, and ensure compliance with the 40-hour workweek law, according to BHP’s announcement. Following the agreement, the union communicated to its members to return to work.
The union had initiated a strike over payment disputes earlier in the week but reached a preliminary agreement on Friday that temporarily suspended the strike. A memo sent to union members indicated that a strike could be resumed if BHP did not address contract negotiation concerns.
While BHP did not disclose specific details of the agreement, sources indicated that the company offered a bonus of approximately $32,000 per worker, along with an additional $2,000 in soft loans. This offer came after an earlier proposal of $28,900, which was below the union’s demand of 1% of shareholder dividends, estimated to be around $35,000 to $36,000 per member.
Following the announcement, LME copper prices rose by 1% to $9,211, reflecting a positive sentiment across the metals market.