Collahuasi union: No advances on contract deal

- Monday, June 18, 2007

Collahuasi union: No advances on contract deal

Labor negotiations between union leaders and management of the Collahuasi copper mine in northern Chile's region I remained stalled on Monday after more than a week without talks, a union spokesperson told BNamericas.

Union rep Juan Barraza said that if the company does not present a new, formal pay offer to the 698 union members, or 97% of Collahuasi's workforce, the group will start a legal strike from the first week of July.

Collahuasi officials were not immediately available for comment.

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The company has offered a 2.2% pay raise in real terms for renewal of work contracts while the unionized employees are pushing for an 8% raise, according to earlier reports.

Current contracts expire June 30, Barraza added.

Collahuasi produced 440,000t of copper in 2006. The mine is jointly controlled by London-listed Anglo American (LSE: AAL) and Xstrata (LSE: XTA), each with 44%. Japan's Mitsui controls the remaining 12%.