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6 February, 2001Workers and their trade union charge that Billiton's Colombian subsidiary is cutting corners to maximise short-term returns.
COLOMBIA: The general secretary of the International Metalworkers' Federation, Marcello Malentacchi, has once again written to the head office of Billiton Plc to express concern about the health and safety conditions for workers at the multinational's Cerro Matoso nickel mine and plant, in Colombia.
The workers and their trade union, the Sindicato de Trabajadores de la Empresa Cerro Matoso S.A., have made serious charges against the Cerro Matoso management saying that, in setting up its second production line for ferronickel in January, management cut corners in order to maximise the short-term returns on its investment, ignoring its responsibility not only for the workers' health and welfare but also the wider environment.
As a result of installing inferior equipment, with unreliable, substandard spare parts and less powerful, inefficient pumps, the overall level of efficiency has been greatly impaired, and when the plant will be producing at its normal operating rate of around one million tonnes per year, the situation is likely to get much worse. Furthermore, the extreme exposure levels occurring in the company's mine are causing progressive lung deterioration and loss of sight for those working in this area.
Malentacchi, in his letter to Billiton's executive director, M. L. Davis, reminds him of the requirements of all international companies to fully honour the principles enshrined in the OECD's Revised Guidelines for MNCs. Malentacchi points out that many MNCs have found that respecting employees' rights and improving the environment in which they work bring significant operational and thus financial benefits. "It is on this basis that many governments find the moral as well as legal justification to ensure their legislative regulations are complied with. The Cerro Matoso management has not only failed to observe these standards but has quite deliberately ignored them."
The IMF will be keeping a close watch whether Billiton investigates the charges against Cerro Matoso and acts to ensure its subsidiary fully respects its responsibilities.
Billiton Plc is one of the world's largest mining and metals companies. In addition to mining areas in Latin America, other major operations are concentrated in Southern Africa and Australia.
The Cerro Matoso trade union belongs to the Metal & Mine Workers' Union of Colombia (UTRAMMICOL), which is affiated at global level to the IMF.
The workers and their trade union, the Sindicato de Trabajadores de la Empresa Cerro Matoso S.A., have made serious charges against the Cerro Matoso management saying that, in setting up its second production line for ferronickel in January, management cut corners in order to maximise the short-term returns on its investment, ignoring its responsibility not only for the workers' health and welfare but also the wider environment.
As a result of installing inferior equipment, with unreliable, substandard spare parts and less powerful, inefficient pumps, the overall level of efficiency has been greatly impaired, and when the plant will be producing at its normal operating rate of around one million tonnes per year, the situation is likely to get much worse. Furthermore, the extreme exposure levels occurring in the company's mine are causing progressive lung deterioration and loss of sight for those working in this area.
Malentacchi, in his letter to Billiton's executive director, M. L. Davis, reminds him of the requirements of all international companies to fully honour the principles enshrined in the OECD's Revised Guidelines for MNCs. Malentacchi points out that many MNCs have found that respecting employees' rights and improving the environment in which they work bring significant operational and thus financial benefits. "It is on this basis that many governments find the moral as well as legal justification to ensure their legislative regulations are complied with. The Cerro Matoso management has not only failed to observe these standards but has quite deliberately ignored them."
The IMF will be keeping a close watch whether Billiton investigates the charges against Cerro Matoso and acts to ensure its subsidiary fully respects its responsibilities.
Billiton Plc is one of the world's largest mining and metals companies. In addition to mining areas in Latin America, other major operations are concentrated in Southern Africa and Australia.
The Cerro Matoso trade union belongs to the Metal & Mine Workers' Union of Colombia (UTRAMMICOL), which is affiated at global level to the IMF.