Union at BHP's Escondida mine in Chile refuses to pause contract talks after fatal accident

By Reuters News
FILE PHOTO: Workers of BHP's Escondida, the world's biggest copper mine, are seen in front of the open pit, in Antofagasta, northern Chile March 31, 2008. REUTERS/Ivan Alvarado/File Photo

By Fabian Cambero

- One of the unions at Chile's Escondida mine, the world's largest copper operation, on Friday rejected BHP's BHP.AX attempt to delay contract talks after a worker was killed in an accident earlier this week.

The Australian-based miner, in an internal note seen by Reuters, said it had asked for the temporary suspension of talks with supervisors and staff because of the death, but that the negotiations would continue on schedule after the union representing supervisors refused its request.

"We condemn the company for using this tragedy to seek a suspension of the ongoing collective bargaining process, especially when (unions) have repeatedly warned about poor safety conditions at the site," the supervisors' union said in a statement.

In a later statement, BHP BHP.AX said the request was intended to focus on supporting workers after the incident.

"The request for a temporary suspension of the collective bargaining process — a measure provided for in the labor code — responds precisely to this priority and to concentrating our efforts on the support, containment and care actions that this difficult moment requires," it said.

The union representing the mine's rank-and-file workers said it was "unacceptable" that much of the activity in the mine continued after the accident, with only part of the operation being halted after intervention by Sernageomin, the country's mining regulator.

It also criticized the company's attempt to pause the talks on a new contract with supervisors.

"This request appears to be nothing more than a delaying tactic, which we categorically reject. A worker's death cannot be turned into a tool or an argument for other ends," the union said.

BHP said in its statement that it fully halted mining after the accident, along with much of the rest of the site's operational areas.

Supervisors are due to vote next week on the company's latest formal offer. The union representing them has urged members to reject it, potentially clearing the way for a strike.

Escondida's management said late on Thursday that operations were gradually resuming while the company assesses the situation following the accident.

The mine, in Chile's northern Atacama Desert, is operated by BHP. Rio Tinto RIO.L also holds a 30% stake and Japan-based JECO owns 12.5% of it.

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.