LABOUR PRODUCES ALL VALUE

BHP turns to mediation as Chile miners seek share of copper boom

ALL VALUE BELONGS TO LABOUR

 

5th June 2024
By: Bloomberg

BHP Group is heading into mediation with union leaders in Chile in a bid to avoid a strike as this year’s surge in copper prices inflates the bottom lines of producers and expectations of their employees.

The Spence mine operated by the Melbourne-based mining giant requested a five-day mediation under Chilean labor rules after management failed to reach an agreement with the union in regular negotiations.

The talks at Spence shine a light on tensions that can arise from elevated commodity prices. Even after a recent pullback, copper is still one of the best performing metals this year with futures up 16% on the London Metal Exchange. While producers strive to constrain fixed costs in a cyclical business that requires high levels of investment, everyone from workers to investors and governments look to share in the windfall.

To be sure, collective bargaining in Chile is often marked by brinkmanship and last-minute deals during mediation. Still, the two sides remain far apart heading into the final phase, according to union boss Ronald Salcedo. Sticking points include the size of the wage increase, bonuses and benefits.

“We’re willing to continue talks, but we want to participate in these profits,” Salcedo said. A strike could began as soon as June 12, he said.

Spence, which produced about 250 000 metric tons last year, is also being tracked by traders for clues into how talks may unfold in the coming months at BHP’s other mine in Chile — the giant Escondida operation that churns out more than one-million tons a year and has been the scene of lengthy strikes in the past.

Edited by Bloomberg