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Codelco's Andina workers agree to wage deal-union

Sat Nov 21, 2009 7:36pm IST
 
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SANTIAGO, Nov 21 (Reuters) - Workers at Chile's Andina copper mine approved a wage offer from owner Codelco, a union leader said on Saturday, in a deal that is likely to help the world's top copper miner in upcoming labor negotiations.

Andina unified workers union official Christian Munoz said 70 percent of workers voted to accept the company's proposal that included a single 3.0 percent wage hike, nearly $20,000 in bonuses per worker and $7,000 in soft loans.

"We didn't have any difficulties during negotiations with the company," Munoz said.

Andina's labor talks were watched closely by the market as an upswing in copper prices has raised the demands of mine workers in Chile, which produces a third of the world's copper.

The 1,200 workers, which represent about 60 percent of the mine's labor force, in October rejected a Codelco [CODEL.UL] early offer to raise salaries 3.0 percent and hand out bonuses worth around $16,000 per worker.

The contract expires on Nov. 30. Andina produced 219,500 tonnes of copper last year.

Workers at Codelco's massive Chuquicamata copper are seeking a 7.5 percent wage hike in negotiations that should conclude in late December. Chuquicamata produced 315,000 tonnes of copper in 2008.

Analysts say Codelco could struggle to secure a deal with workers at Chuquicamata as its output increases and copper prices rise. However, the deal in Andina is likely to ease expectations from workers at Chuquicamata, some experts and union officials say.

Global miner BHP Billiton (BHP.AX: Quote, Profile, Research) (BLT.L: Quote, Profile, Research) is struggling to end a 40-day strike at its Spence copper mine that has raised the specter of wider disruptions at its other operations in Chile. BHP earlier on Friday agreed to resume talks with strikers. (Reporting by Alonso Soto, Editing by Sandra Maler)

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