BHP formally requested government mediation on October 5 in its collective bargaining dispute with Escondida’s No. 2 Supervisors and Staff union. Under Chilean labor rules, the process temporarily suspends implementation of the approved strike for at least five working days, allowing the two sides to continue negotiations and improve their proposals. The mediation can be extended for a further five days by mutual agreement.
Around 95% of participating union members previously voted for strike action, so the risk has not disappeared; rather, the immediate threat of a stoppage has been pushed back. With Centinela simultaneously nearing a potential strike, labor negotiations at major Chilean copper mines are becoming an increasingly important near-term concentrate-supply risk.
