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Chinese Mine Firm Shougang Hierro Perú Again Reneges on Salary Hike

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16 November, 2009

ICEM’s last newsletter, 14 days ago, reported on the end of a strike and the pending payment of a long-awaited pay increase for Peruvian mineworkers at the Marcona mine of Shougang Hierro Perú. That salary increase had been agreed to in July 2009, through mediation by Peru’s Labour Ministry, but never paid, so miners again went on strike for 15 days in October.

However, on 4 November, after resuming work and again being promised July’s salary increase, Shougang miners again went on indefinite strike action following the company, yet again, failing to make payments.

This time, the company transported non-striking workers around the mine in illegal and unsafe vehicles, as transport drivers joined miners on strike. Such practices are against both national and regional law in the Ica District of southern Peru, and coupled with failure to pay the negotiated and agreed-to salaries, depicts a multinational metals company, albeit state-owned, exhibiting contempt for Peruvian law and its workers.

The ICEM affiliate in Peru, the National Miners’ and Metalworkers’ Union (FNTMMSP), last week called upon Labour Minister Manuela García Cochagne to act and deal harshly with the latest illegalities of Shougang Hierro. The Chinese company has been mining iron ore near the town of San Juan de Marcona since its 1993 purchase from the state. Since then, the union says that Shougang has only poverty levels in the area, and has blocked local residents from owning land.

Elsewhere in Peru’s mining industry, the Ministry of Labour is attempting to avoid a strike at the Los Quenuales zinc mine, owned by the Swiss transnational Glencore. The dispute there runs consistent with many stories from around the world; Glencore is using the current global economic crisis to renege on a prior salary agreement for some 1,800 workers. The weekly raise that the Swiss holding company refuses to pay is 2 Peruvian Soles per week, the equivalent to US$0.68.

FNTMMSP Gen. Sec. Luis Castillo Carlos 

The branch union at Los Quenales represents workers also from contract companies operating at Los Quenuales. The union has been attempting to negotiate with management since 15 October, with no positive results. FNTMMSP General Secretary Luis Castillo Carlos has been negotiating on behalf of the workers.

A collective of multinationals face another Peruvian dispute at the Antamina copper and zinc mine. Antamina is controlled by BHP Billiton and Xstrata (33.75% each), with Teck Cominco of Canada and Mitsubishi of Japan holding smaller stakes. Management of one of South America’s largest copper/zinc mines is offering no pay increase, while FNTMMSP is seeking a raise of living wage each day. Negotiations will continue on 17 November, and if they fail, a strike mandate could be in order.