Chile: Workers at Escondida mine approach strike

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Created: Tuesday, 17 August 2021 15:41

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Workers at the Escondida mine in Chile are edging closer to strike action after rejecting BHP's final wage offer threatening the global supply chain. (In 2020, Chile’s copper mine production was estimated at 5.7 million metric tons of metal content, representing 28.5 percent of the global copper production that year.) Workers at the Escondida mine in Chile have rejected owner BHP Group’s final wage offer.

The Escondida mine is the biggest copper-producing mine globally, with proven reserves of 34.7 million tonnes, of which 22.5 million tonnes is estimated to be recoverable, representing 5% of the world’s supply of the metal. The mine is of critical importance to Chile, with copper production accounting for 10%-15% of the country’s GDP. The rejection of the wage offer has prompted BHP to request government-mediated talks as a last gasp effort to prevent strike action, which could paralyse the country’s copper industry. If confirmed, the talks are likely to last five to 10 days, and if no agreement is reached, the union would call a strike. “[A strike] is the only tool that in this stage remains for the workers to press for an urgent rectification of the way things are done by the company’s administration,” the union said. Union leaders announced that 99.5% of workers who had voted had rejected the final contract offer, indicating a wide gap between the workers and BHP. This is not the first time that the Escondida mine has been paralysed by strike action.