Chile's labor woes are spreading from copper to lithium because of Albemarle Corp. One of the union members of the huge salt water processing business left.
135 members of the Salar union went on strike on Wednesday after failing to reach a wage agreement with management.
In a statement, union leaders accused the company of anti-union practices and said they were pushing for better working conditions and wage equality. The company said it regretted the union's decision and remained confident of a deal because it had no dispute with the other three unions.
Albemarle is ready for emergency measures to continue operations, but much depends on how long the strike lasts. The U.S.-based company is the world's largest producer of lithium and Chile is the second-largest exporter.
The shutdown of lithium workers comes at a time when the global supply of metals for rechargeable batteries is tight and Chile's huge copper industry is facing the risk of a strike, with three mines in the sector facing disruptions.
Workers have been encouraged by windfalls from metal producers and host countries are considering raising taxes to help address inequality exacerbated by the pandemic. All this is happening in Chile, which is drafting a new constitution that could lead to stricter rules on the rights of water, glaciers, minerals and communities, as well as presidential elections in November.
At the same time, as input prices begin to rise, companies are trying to control labour costs in cyclical businesses.
Albemarle has two production sites in northern Chile: the Salar factory in the Atacama Desert and Lanegra near the city of Antofagasta. According to the company's website, a total of 546 people work on the two sites.
