Copper prices rise over fears of a strike
By Alonso Soto |
December 31, 2009, Thursday
|
Print Edition
Print Edition
CHILE-BASED Codelco, the world's No. 1 copper producer, on Tuesday braced for a strike at its giant Chuquicamata mine, after workers rejected a wage offer, stoking supply fears on global markets.
A strike could start on January 4 at Chuquicamata, which produces around 4 percent of the world's mined copper, though analysts expect any stoppage to be short lived.
State-owned Codelco said it was mulling whether to seek five days of government mediation to head off a strike. However, company sources said mediation looked unlikely.
A strike would curb output by around 1,800 tons a day. Copper prices shot up 3 percent to 15-month highs in London on supply fears, but slipped later in New York on other factors.
Chuquicamata union leaders had expected workers to accept Codelco's wage offer, and said the vote to reject the deal was close, with just a few dozen votes tipping the balance.
Some workers scuffled with union officials after the vote, chanting "Together, Chuqui will never be conquered."
A strike at the Chuquicamata complex, which had been on course to produce 565,000 tons of copper this year, would be the most serious by Codelco's unionized workers since 1996.
Chile President Michelle Bachelet appealed to workers to reconsider.
"I hope the workers look again at the company's proposal, which seems serious, reasonable and interesting, and hope they decide to accept it and not carry out a strike which would hurt us all," Bachelet said.
However, in a show of defiance hundreds of cheering workers at the mine vowed to strike at any cost to improve wages.
"There will be no dialogue before the strike," Hernan Guerrero, a union leader, told workers at the mine.
A strike could start on January 4 at Chuquicamata, which produces around 4 percent of the world's mined copper, though analysts expect any stoppage to be short lived.
State-owned Codelco said it was mulling whether to seek five days of government mediation to head off a strike. However, company sources said mediation looked unlikely.
A strike would curb output by around 1,800 tons a day. Copper prices shot up 3 percent to 15-month highs in London on supply fears, but slipped later in New York on other factors.
Chuquicamata union leaders had expected workers to accept Codelco's wage offer, and said the vote to reject the deal was close, with just a few dozen votes tipping the balance.
Some workers scuffled with union officials after the vote, chanting "Together, Chuqui will never be conquered."
A strike at the Chuquicamata complex, which had been on course to produce 565,000 tons of copper this year, would be the most serious by Codelco's unionized workers since 1996.
Chile President Michelle Bachelet appealed to workers to reconsider.
"I hope the workers look again at the company's proposal, which seems serious, reasonable and interesting, and hope they decide to accept it and not carry out a strike which would hurt us all," Bachelet said.
However, in a show of defiance hundreds of cheering workers at the mine vowed to strike at any cost to improve wages.
"There will be no dialogue before the strike," Hernan Guerrero, a union leader, told workers at the mine.
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