Union Clash at World’s Largest Copper Mine Impacts Global Market
Workers at BHP’s Escondida copper mine in Chile rejected a request to pause their strike and resume negotiations. As contract talks falter, the strike, which started on Tuesday, may affect global copper prices and production. Tensions rise as the union accuses BHP of anti-union practices and replacement of workers.
Workers at BHP's Escondida copper mine in Chile have rejected the company's request to pause their strike and return to the negotiating table, standing firm on their demands for a greater share of the mine's profits. The strike, which commenced on Tuesday, threatens to disrupt production and impact global copper prices.
BHP and union representatives had a preliminary meeting on Wednesday, aiming to bridge their differences and resume formal talks, but the talks fell through, both parties confirmed. BHP proposed a temporary suspension of the strike, indicating its willingness to enhance its offer. The union, however, refused, citing the company's anti-union tactics and overly stringent conditions on restarting negotiations.
The ongoing strike has caused significant operational disruptions, with key facilities like the Los Colorados concentration and electrowinning plants completely offline. The mine is operating under a contingency plan, primarily with non-striking workers. The economic stakes are high, as a prolonged strike could potentially cost BHP between $25 million and $30 million per day, mirroring the impact of a similar 44-day strike in 2017 which negatively affected Chile's GDP.
(With inputs from agencies.)
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