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27 July, 2009
Over 1,000 mineworkers at the Chinese owned Marcona mine in Peru, ended their indefinite strike action on 24 July, returning to work following a government resolution ordering increased wages, plus a one-off bonus. The workers are members of the ICEM affiliated Federación Nacional de Trabajadores Mineros, Metalúrgicos y Siderúrgicos del Perú (FNTMMSP).
Shougang Hierro Peru is the country’s only iron producer, producing 7.5 million tones of iron ore in 2008. Production was halted at the Marcona mine, 217 miles south of the capital Lima in Ica Province, when workers downed their tools on July 13, starting an indefinite strike action for higher wages.
Shougang mineworkers in Marcona
The global financial crisis has lowered prices for most of Peru’s metals exports; companies throughout the industry are using that as an excuse to avoid making overdue salary rises. "Shougang has the capacity to raise our salaries, just with 4 percent of its profits," union leader Julio Ortiz stated at the outset of the strike. Nearly 10,000 mineworkers have lost their jobs in Peru since November 2008.
Ortiz then reported last Friday "We have lifted the indefinite strike following a (pay) increase granted by the Ministry of Labour, although we don't agree with the increase,"
The Chinese Shougang Group, which has run the mine since 1993, had previously offered an hourly wage increase of US$0.23 but that was rejected by the union. The Peruvian government instead passed a resolution ordering a US$1.1 a day increase, plus a one-off bonus of US$433. The 1,124 striking workers had been seeking a US$3.3 increase on their US$18.3 daily wage. The rise is backdated to 31 March 2009.
Local press had reported that the strike had cost the company over US$6 million, the claims were denied by the company. Negotiations between the union and company management were brokered by Labour Minister Manuela García, and provincial Governor Rómulo Triveño.
Peru is the world's top producer of silver, and second top producer of copper and zinc.