14 February, 2011
ICEM Colombian affiliate Sintracarbón averted a strike last week at the world’s largest set of coal mines, and accepted a two-year labour accord with Carbones del Cerrejón, the producer of rich thermal coal from La Guajira state that is owned jointly by AngloAmerican, BHP Billiton, and Xstrata.
In a statement, the ICEM praised the new contract, calling it a result of respectful social dialogue, a process set in place with ICEM assistance back in 2004. The economic stakes counting down to a planned 8 February by 4,200 Sintracarbón members were so high that Colombia Vice President Angelino Garzón and Vice Minister of Labour Relations Ricardo Echeverry brokered final talks.
The two-year labour accord between the mining union and Cerrejón calls for a first-year wage increase of 6.5%, retroactive to 1 January 2011, and a 2012 increase of the greater between 5% or 2% above the Consumer Price Index.
But more importantly, Sintracarbón continued to make improvements at the bargaining table for the communities surrounding the massive coal complex and tangible gains for over 5,500 contract workers employed at Carbones del Cerrejón and Puerto Bolivar, the company’s deep-water port 150 kilometres from the mine.
The union recorded improvements in health benefits for workers and their families, transportation stipends to reach medical care, education and scholarships for family members, and an increase in the number of housing loans for workers.
Cerrejón stood firm on a first-year wage offer of 6% but following a 27 January strike ballot in which workers voted 96.4% for industrial action, the company first raised its offer to 6.3% and then 6.5% in mediation in Bogotá with the Vice President.
ICEM General Secretary Manfred Warda
“We have witnessed both sides reach the brink of negotiations in the past several sets of two-year talks,” said General Secretary Manfred Warda in the ICEM statement. “The fact that Sintracarbón and Cerrejón have not had a strike in over 20 years is testament to mutual respect and shared responsibility by both the union and management in looking after the welfare of communities, workers, and their families.”
The ICEM congratulates the union members of Sintracarbón for mobilising for job action and then winning a deserved 2011 pay increase of 6.5%, better than double Colombia’s current 3.19% CPI. The ICEM notes that Cerrejón is a highly profitable enterprise for the parent companies, as well as for Colombia, which exported 76 million tonnes of coal in 2010 – 31 million tonnes of which was generated by the members of Sintracarbón.