12 July, 2010
The ICEM affiliate in Peru, the National Miners’ and Metalworkers’ Union (FNTMMSP), have ended a 10 day strike at Chinese-owned iron ore miner Shougang Hierro Peru and accepted a deal proposed by Ica region's labour department (DRTI). Acting as arbitrator to the dispute, the DRTI proposed a 3.1 sol (US$1.10) per day raise for the 1,600 mineworkers and a 93 sol (US$35) per month increase for non-mineworkers, as well as a one-time bonus of 1,000 soles.
The original proposal, made by the national Ministry of Labour, offered workers a one-time bonus of 900 soles, as well as a wage increase of 87 soles for non-mineworkers and 2.9 soles for miners. Rejecting this offer, workers began an indefinite strike on 28 June. Operations at the Marcona mine were also halted in March as a result of a three-day strike by workers, see ICEM report here.
Shougang is Peru's only iron ore producer, output in the first quarter of 2010 was 1.47 million tonnes, a 45.4% increase on last year.
The strike, halting production, caused the company major losses and Shougang was forced to declare force majeure on iron ore shipments.
FNTMMSP General Secretary, Luis Castillo Carlos
Elsewhere in Peru’s mining industry, US-owned Doe Run continues to refuse to restart operations at the polymetallic smelter in the town of La Oroya, as a 27 July deadline approaches. Before restarting operations, the company is asking for flexibility to pay taxes and fines, as well as modification of a 1997 privatization agreement that would protect the firm and its parent company from environmental lawsuits abroad.
Doe Run Peru also requested the government to delay application of environmental standards at the La Oroya complex. The area is described as one of the most polluted areas in the world.
While the company continues to dodge government demands, workers have been without work. One possible solution considered by Doe Run Peru is to relocate operations entirely, this would decimate the economy in La Oroya and neighbouring Junin region, and Doe Run Peru workers will not accept relocation plan.
Doe Run Peru is an affiliate of the New York-based Renco Group.