2 November, 2009
Peruvian mineworkers of the Chinese-owned Shougang Hierro company lifted a 15-day strike on 13 October, following agreement with management. As previously reported by the ICEM, the Chinese state-owned steel company, Shougang Group, owns Peru’s only iron ore mine, Marcona, and the company had been living up to its reputation of paying the lowest wages in the entire Peruvian mining sector.
The strike began with management’s refusal to follow through on commitments made in July 2008 to raise miners’ salaries by a mere US$1.91 a day. That July agreement was reached through arbitration by Peru’s Labour Ministry. All 1,200 mineworkers at the Marcona mine, in the Ica region of Peru’s south, joined the strike, with an industry report suggesting that the company lost some 500,000 tonnes of iron ore output during the 15-day strike.
The settlement will see the company pay the promised wage raise to workers, along with an outstanding bonus payment of US$35 to each worker. The company also committed not to retaliate against the workers following their strike action, said union leader Rey Fernandez Patiño.
Production at the mine last year reached 7.49 million tones. The Chinese company is undertaking a US$1 billion expansion, which will increase production to ten million tonnes annually. Mining makes up 60% of Peru’s GDP.
The ICEM affiliate, National Miners’ and Metalworkers’ Union (FNTMMSP) successfully carried out a national mining strike on 19-20 October, with one of the top priorities giving support and solidarity to the Shougang miners. The FNTMMSP was also demanding compliance from the Labour Ministry for the negotiated raise to Shougang Hierro miners’ wages. The national strike, as well, demanded the signing of a mining retirement bill by the government. In addition, FNTMMSP is seeking passage and enactment of mining-profits legislation from the country’s National Assembly, a law which will assist all miners financially.