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Chile Collahuasi, workers meet to seek strike end
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Chile Collahuasi, workers meet to seek strike end
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By Fabian Cambero
IQUIQUE, Chile (Reuters) - Union leaders at the world's No. 3 copper mine, Chile's Collahuasi, on Monday met with management for the first time in weeks as the two sides prepared to open wage talks that could end a 25-day...
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Wokers march in support of a strike of Collahuasi copper mine at Iquique city, some 1862 km (1156 miles) north of Santiago November 22, 2010.
Credit: Reuters/Fabian Cambero
By Fabian Cambero
IQUIQUE, Chile |
Mon Nov 29, 2010 3:35pm EST
IQUIQUE, Chile (Reuters) - Union leaders at the world's No. 3 copper mine, Chile's Collahuasi, on Monday met with management for the first time in weeks as the two sides prepared to open wage talks that could end a 25-day strike.
Collahuasi over the weekend offered to restart contract talks after workers ignored a hefty bonus offer, easing its stance in a walkout that is set to become the longest ever at a major Chilean private copper mine.
The two sides met with a mediator before contract negotiations scheduled for this evening that are expected to continue for at least several days. A wage deal would have to be ratified in a vote by strikers.
"We hope the two sides can reach agreements at the collective bargaining table," said Marco Ordenes, the Roman Catholic bishop of the northern city of Iquique who is mediating between the two sides.
Both workers and management seem keen for a deal as fatigue sets in. The walkout by Tuesday will rival the 2006 stoppage for 26 days at the world's No. 1 copper mine Escondida.
The strike's limited impact on output meant copper prices held steady at about $8,220 per tone amid the news of a first meeting between the two sides. Copper's rally to a record high near $9,000 a tone this month was driven primarily by macroeconomic data including the dollar and demand from the world's top consumer China.
Though the union's hand may have been strengthened by workers' snubbing of a $29,000 bonus offer that expired on Friday, union leaders are aiming for a quick deal to appease restless strikers who are not getting paid during the walkout.
Collahuasi, which by Thursday had convinced less than 15 percent of the 1,551 unionized workers to sign the agreement, needs more than 50 percent acceptance to legally end the strike through direct negotiations with the workers.
Union leaders have consistently pressed the company to renew contract talks to end the strike.
LITTLE EFFECT ON OPERATIONS
Collahuasi, which extracts 3.3 percent of the world's mined copper or 535,000 tones a year, on Monday said it loaded a new shipment of 44,000 dry tones of copper concentrate bound to Asia.
Normal deliveries highlights how well Collahuasi prepared for the strike with replacement workers and copper stocks, keeping the walkout influence over markets limited even as prices approach record highs.
"If it went on for another two weeks, I think it would become much more important," said Max Layton, an analyst with Macquarie Securities in London. "I'd say up to this point the bullish impact has been priced in."
Traders believe Collahuasi has lost only 1 percent of annual output due to the strike -- which experts say the mine can recover easily after the strike ends.
Collahuasi will maintain the direct talks with workers even while negotiating with the union, but the bonus offer now drops to $25,000 for those who did not accept by the Friday deadline.
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