BHP's Escondida and Spence Mines Face Strike Threat

SEATTLE (Scrap Monster): Australia-headquartered multinational mining and metals company BHP is staring at strike by unionized workers, which is likely to impact the company’s Escondida and Spence copper mine operations in Chile. Incidentally, these two mines together account for nearly one-fifth of Chile’s total annual copper output.

The workers will soon vote on a potential strike action, said reports. The negotiations between the company and the union representatives to reach a contract had ended without a solution.

The 205 workers belong to the company’s Santiago-based Integrated Operations Centre (IOC), which controls pits, as well as cathode and concentrator plants in northern Chile. While creating IOC in 2019, the company had sacked several workers, who were later rehired with much lower benefits. These workers had been in negotiations with the company demanding improved working conditions and benefits.

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A vote in favour of a strike would make it necessary for both the parties to undergo government-led mediation for 5-10 days, as per Chilean labour law. However, a legal loophole allows the company to replace its striking workers, which in turn would ensure smooth operations at these mines.