Labor negotiations at the largest copper mine of Antofagasta Mining Company in Chile have collapsed. The workers rejected the company's final wage offer and a strike was imminent.
On Tuesday, local time, union members at the, Los Pelambres mine voted for the strike with 98% of the vote. According to Chilean labour rules, the government can intervene in mediation and make a last-ditch effort before the strike begins.
Chile's mines, which account for 1/4 of the world's copper production, have recently been mired in a series of labour negotiations over the, Los Pelambres mine.
The union called, Los Pelambres Mine the largest, lowest-cost and most profitable business in the group, and the salaries paid to workers did not match their status. A foundation has been set up to help more than 400 union members survive the strike.
After the vote, union president Eduardo Escobar said in a text message to members: "without the support of the grassroots, it is difficult to achieve the goal."
Antofagasta Mining is owned by Chile's richest family. Last year, the company's two other mines reached a wage agreement in the last hour of negotiations to avoid a strike. According to the agreement, the company will pay a bonus of more than 20,000 US dollars to each worker. Compared with the above two mines, the, Los Pelambres mine is of higher value and has more leverage in bonus negotiations.
Chilean government figures show that the, Los Pelambres mine produced 372100 tons last year.
International copper prices hit their highest level in nearly a decade last month and have since fallen back, but they are still up more than 90 per cent from their March low. The strike is likely to support the recent fall in copper prices.
