BHP offers Escondida union package worth 28 million pesos — The Rio Times
BHP has submitted a final offer of 28 million Chilean pesos, or about $28,700, per worker to the Union of Supervisors and Staff No. 2 at the Escondida copper mine in Chile. The amount includes bonuses and a preferential loan. The offer expires on Tuesday, October 13, The Rio Times reports.
Terms of BHP’s offer
According to Chilean outlets Diario Financiero and Emol, 25 million pesos of the proposed amount consists of bonuses, while another 3 million pesos is a preferential loan. The union considers only the bonus portion to be an actual payment, as workers will have to repay the loan.
The offer also provides for a new holiday bonus of 1.5 million pesos, monthly travel compensation of 350,000 pesos for workers living outside Antofagasta, and education expense reimbursement worth 25 UF, Chilean indexed units of account.
BHP, which operates Escondida together with Rio Tinto, also rejected a proposal to introduce a 14-days-on, 14-days-off work schedule and incentives for mastering several specialties. The company said its final offer improves wages, bonuses and social benefits.
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Strike vote and mediation
The union is led by Alexis Barrera and has about 1,020 members. At the end of September, around 95% of its members supported a strike. After that, BHP asked Chile’s Labor Directorate for mediation, which postponed a possible strike during the negotiations.
Barrera told Emol that the union is seeking conditions already enjoyed by other Escondida worker associations, including a monthly production bonus. The union also demands wage increases and changes to the staff performance evaluation system.
Emol reported that without an agreement, the strike could begin with the first shift on Wednesday, although neither side publicly confirmed this. The parties may extend mediation by mutual agreement, which would delay a work stoppage. Escondida is described as the world’s largest copper mine and Chile’s largest standalone mine.
