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Colombia Prodeco Mine Dispute Settled

5 December, 2011

Settlement was reached on 25 November to end the conflict between ICEM affiliated Sintracarbón and Glencore subsidiary Prodeco SA in northern Colombia. ICEM reported two weeks ago the resounding vote to strike by 1,200 miners after repeated efforts to bargain with company management toward a new collective agreement failed. 

The Calenturitas mine is located in Cesar department’s La Jagua de Ibirico municipality.

The strike lasted nine days, with all Colombian ICEM affiliates present at the picket, Sintraelecol, Fenaltec, Sintracarcol, Sintravidricol, USO and Sintracarbon. Worker unity, in face of concerted company efforts to intimidate and harass, led to agreement on a new contract set to last two years. Operations at Calenturitas were resumed in the afternoon of 25 November after the signing, while at the same time ICEM affiliates gathered for the ICEM Congress in Buenos Aires were planning international solidarity efforts to support the strike.

Prodeco Picket

Workers achieved a salary increase of 1.5% above the consumer price index and a settlement bonus of 1.5mn pesos (US$773) per worker. The agreement benefits all employees of Prodeco, strengthening their rights association, collective bargaining, and right to strike. And importantly the agreement improves job security.

The effective strike caused the company to lose more than 30,000t/d of coal production, according to reports.

As is almost always the case in labour disputes in Colombia, the Ministry of Labour made clear that if pushed they would declare the strike illegal, empowering the courts to disregard the collective will of mineworkers at Calenturitas.

Calenturitas produces over five million tonnes of coal a year. Prodeco produced 10 million tonnes of coal in 2010 and aims to increase production to 19.9 million tonnes in 2013 and 20.7 million tonnes in 2015.

For every 100 pesos of Prodeco’s cost structure, only 5 pesos are spent on their payroll.