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The move follows the failure of the Spanish-Mexican consortium led by Spain's Isolux Corsán to resolve a strike staged by construction unions Sintrasar and Sintec over wage demands and the working environment.
The strike, started June 15, culminated on July 29 when union members stormed and occupied the central offices of Metro de Santiago, which resulted in police making several arrests.
The works concerned involve construction of section 3 of the line, and are 48% complete, according to Metro de Santiago, which said in a release it will re-award the contract within 30 days to other companies working on the project.
Overall works on line No.3 are 36% complete while the project to build line No 6 is at 54%, the company said.