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Colombian Mine Union Ends Coal Strikes at Drummond, Glencore

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26 June, 2006

Colombian mining union Sintramienergética ended two coal strikes recently that had begun to impact markets. On 22 June, the union agreed to a two-year agreement with US-based Drummond that ended a month-long strike at the La Loma mines in Cesar state.

Sintramienergética, in addition to winning social benefits, achieved an 8% wage increase for this year, and will receive 1.5% above the inflation rate in 2007. Strike-ending mediations took place under the guidance of the Ministry of Social Protection.

Some 2,000 miners struck Drummond on 22 May, and the walkout directly affected another 1,000 contract workers, as well as some 5,000 employees of transport, terminal and other service companies connected to Drummond’s coal export business. The company exports some 22 million tonnes of coal annually from its Puerto Drummond, Colombia, deep-water port.

Non-ICEM-affiliated Sintramienergética also came to terms on 6 June with Swiss-based Glencore International at the Carbones de la Jagua mining operation. About 1,000 miners there began a strike on 17 May.

The settlement gives workers a 7.5% salary increase, and the new agreement also grants social benefits to both Glencore workers and contract employees. Glencore mines some 12 million tonnes annually from this Jagua de Ibirico location in Cesar state.