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‘Together We Can’ …. Chile’s Copper Miners Unite for National Gain

1 August, 2011

The ten-day strike by union members of Sindicato No. 1 Escondida of Chile’s Federation of Miners (FMC) at the world’s largest copper mine has galvanized mining unions in the South American country. In unprecedented solidarity, mineworkers’ unions of the private-sector FMC and at state-run Codelco, the Federation of Workers of Cobre (FTC), are uniting to proclaim a larger portion of the world’s copper profits must remain in national hands.

That message was made clear last Thursday, 28 July, when leaders of both federations met in Antofagasta in northern Region II to discuss how companies circumvent labour laws and collective agreement conventions at the expense of mineworkers, and how natural resources are exploited to the detriment of Chile’s national character. Outside the trade union meeting, rank-and-file workers marched and demanded re-nationalisation of copper mining.

28 July manifestation in Antofagasta

That may seem improbable, but one thing is not: soaring pricing on copper concentrates and copper cathodes and the ever-growing profit margins of multinationals that mine and trade the red metal worldwide has created a “Together We Can” mentality. Chile’s mineworkers are now saying that unified industrial action can affect the country’s future for the better.

Consider that on a single day – 30 July – 10% of the world’s copper production stopped when 1,500 FMC miners at Doña Inés Collahuasi (AngloAmerican and Xstrata) joined 2,400 miners of FMC Sindicato No. 1 at Minera Escondida Ltd. (BHP Billiton and Rio Tinto). Although grievances reflected separate sets of negligent circumstances at the two mining complexes, the unity of purpose was evident.

The bosses have declared both strikes illegal because the walkouts occurred during running collective agreements. But when companies abrogate terms of those contracts – or refuse dialogue on health and safety or other concerns – what choice is there? Sindicato No. 1 has taken Escondida Ltd’s breaches to labour court to disprove the illegality of its strike.

Cristián Arancibia

FMC President Cristián Arancibia said that workers are hearing a national calling, that unions of his federation feel a responsibility to the people and communities of mining regions. He said agreement has been reached with the FTC that mineworkers will not be “accomplices to Chile’s resources sold away for foreign investment.” That includes FMC recognition that Codelco is chipping away at FTC’s membership in order to partially privatise the world’s largest copper company.

The FTC’s Cristian Cuevas, in turn, demanded that Escondida Ltd. stop persecuting workers by failing to fulfil the terms of the 2009-2013 collective agreement and disrespecting international labour conventions. He also warned that if BHP Billiton sacked striking Sindicato No. 1 members and replaces them with scabs, the wrath of all Chilean mineworkers will be heard.

The ten-day strike by FMC Sindicato No. 1 at Escondida is portrayed as a difference in a one-off production bonus between the union and management. In fact, it is over dramatic reductions in agreed-upon production bonuses that were reduced three-fold this past spring while multinationals, BHP Billiton (57.5%) and Rio Tinto (30%), were reaping huge profits from a mining enterprise that accounts for 7% of the world’s copper supply.

At Collahuasi, the 24-hour walkout on 30 July – only eight months after a bitter 33-day strike – was over the company negotiating individually with workers outside the collective agreement. It was also brought about by an unresolved health issue from that November-December 2010 strike. The mine is located 4,000 metres high in the Atacama Desert of the Andes where oxygen levels are low and worker body stress is high. Anglo American and Xstrata have a US$750 million expansion underway that will nearly double production. The new open-cast mining area is at even higher altitudes, up to 5,000 metres. The FMC affiliate, Sindicato de los Trabajadores de Collahuasi, seeks dialogue to address the obvious and adverse health affects.