Shougang Peru iron miners to vote on labor ministry ruling

Striking workers at Shougang Hierro Perú, the country's lone iron ore producer, were scheduled to vote late Friday on whether to accept a government-established wage increase or continue a strike, which entered its 29th, a union official said. About 1,400 miners began a strike August 16 to pressure for wage increases and improved working conditions at the mine on Peru's south coast. The labor ministry Thursday set a 4.60 soles/day (US$) wage increase, union spokesman Cirilo Yarihuaman told BNamericas Friday. Shougang, which declared force majeure on shipments last week, had offered a daily wage increase of 3.50 soles (US$1.25), saying slumping iron ore prices rule out further increases. The union is holding out for 15 soles. "The ministry merely studied one issue and hasn't taken into account working conditions and health benefits," Yarihuaman said in a telephone interview. "If the workers accept, they could return to work this weekend." The union has gone on strike every year for more than a decade after labor talks failed. Under Peruvian legislation, the labor ministry sets a wage increase if company and union officials are unable to reach an agreement. Hierro Perú, which was bought from the state by China's Shougang in 1992, produced 6.68Mt of iron ore last year, according to the energy and mines ministry (MEM). First half iron ore export revenue dropped 12.5% to US$428mn, according to the central bank.