25 April, 2011
Codelco, the state-owned mining company of Chile and world’s largest copper producer, reached early terms with three of its five mining unions at El Teniente in Region VI ten days ago. The 40-month agreement will take effect on 1 July 2011 and will cover 2,500 of El Teniente’s 4,000 miners.
The branches of Federación de Trabajadores del Cobre (FTC) that agreed to terms were Sindicato No. 5, Sindicato No. 7, and Sindicato de Trabajadores Caletones. One of the two other branches rejected the proposal, while the other was not included in bargaining.
The package is expected to be considered by those mineworker trade union branches in the coming days.
The collective agreement includes a 3.85% wage increase on 1 July and a CLP 12.3 million (€17,680, US$25,324) bonus, which matches the bonus paid miners at other Codelco divisions in 2010. It also includes an optional loan of CLP 3 million, and a 10% increase in the annual bonus that comes on Chile’s national day, 18 September.
El Teniente is an underground mine that includes some 2,400 kilometres of shafts. It includes an ore processing operation producing molybdenum, and its output of copper lingots and copper anodes is 404,000 tonnes per year. In 2010, it accounted for 27.2% of Codelco’s US$5.8 billion profit.
At another Codelco copper operation, Chuquicamata, part of the El Norte division, FTC branches and management met 12 April to discuss staffing requirements. The Chuquicamata mine recently shed a number of jobs due to union-negotiated early retirements as the operation prepares for a conversion from an open-cast mine to an underground one.
FTC Sindicato No. 1 Vice President Héctor Roco said the union, and three other FTC branches at Chuquicamata, want workers to be given the opportunity to transfer to areas where retirements have lowered job rolls, and they also want a say in the planning of the transition to underground mining.
Codelco employs 17,000 miners in Chile at five divisions: El Norte, Salvador, Andina, El Teniente, and Ventaras.