Mine workers at Xstrata’s (XTA.L) Lomas Bayas copper deposit in northern Chile continued to strike for a sixth day on Monday, after wage talk negotiations with the company failed.
The Lomas Bayas deposit, which is located in Chile’s Atacama desert, has an annual output capacity of around 75,000 tonnes of copper. Chile is the biggest world producer of copper.
Xstrata and representatives of the 385-member union at Lomas Bayas had their first meeting on Friday, mediated by government labor authorities, but no agreement was reached.
“We want the company to make a new salary offer,” said the president of the union, Elias Andronico.
Lomas Bayas said it has implemented a contingency plan and is using stocks to continue normal levels of cathode output, but production of ore from the mine has fallen 50 percent.
The company organized airlift transportation for non-union employees between the city of Antofagasta and the mine as workers have blocked access to the deposit.
Xstrata offered a raise of 4 percent over inflation, plus improvements in health and education benefits, instead of the 6 percent over inflation raise that mine workers are demanding.
The company said it was their final offer and it’s the best they can do due to the global financial crisis
If you enjoyed this post, make sure you subscribe to my RSS feed!
If you would like to make a comment, please fill out the form below.
