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12 February, 2007
ICEM affiliate FNTMMSP in Peru has threatened to strike the copper extraction and smelting enterprises of Southern Copper Corporation, a company that is 75% owned by Grupo México. The union said if the company did not begin fair and honest dialogue this week, a strike could begin on 19 February.
A current collective agreement for some 850 workers at the company’s copper cathodes and blister copper refinery in Ilo expires on 1 March. Miners at the company’s Toquepaka and Cuajone Mines have vowed to launch sympathy strikes if workers at the smelting and refinery operation do strike.
The union issued a strong statement against Grupo México and other multinational mining houses, claiming they have taken rich resources from Peru while leaving many of the nation’s citizens in dire poverty.
FNTMMSP vows that it will not grant another seven-year agreement at Southern Copper. The union also claims the company is attempting to “impose” its bargaining agenda, rather than engage in honest social dialogue.
Southern Copper realised net profits in 2006 of US$2.02 billion on sales of US$5.46 billion. That earnings figure represents a 69% increase over profits posted in 2005.
Southern Copper is currently part of the dispute between Grupo México and another of its subsidiaries, Asarco Inc. The latter company filed for bankruptcy in a US court, and part of the case rests on Asarco’s claim that it did receive adequate value when Grupo México sold Asarco’s 54.2% stake in Southern Peru Copper Corporation to another Grupo México company in 2003.
In mid-2005, Grupo México purchased Phelps Dodge’s 14% stake in Southern Peru, and now holds 75% of the company. Also in 2005, then-named Southern Peru Copper purchased the assets of Minera México.