The union representing workers at Chile's Escondida copper mine on Thursday instructed its members to prepare for a strike because of slow progress in government-mediated contract negotiations.
Over the weekend, more than 2000 union members rejected the latest contract offer from owner BHP Billiton. Local law requires a five-day settlement after the contract is rejected, which may be extended by five days if no agreement can be reached.
In a statement to its members, the union said the proposal had not changed substantially and was far from meeting the improvements needed. The union called on workers to maintain unity and discipline and to be prepared for the final strike.
BHP said it had improved its offer and wanted to be closer to a deal.
BHP Billiton pointed out that on Wednesday, the company put forward a proposal for major improvements, including questions raised by the union. The company is currently waiting for a response. BHP believes the proposal will bring the position closer to a formal agreement.
The talks are taking place at a time when the global economic recovery is expected to lead to high copper prices. Chile is the world's largest copper producer.
