Codelco Copper Mine Strike Leads to Massive Revenue Loss

SEATTLE (Scrap Monster): The week-long strike action at Chile’s Chuquicamata copper mine in Chile seems to have caused hefty losses to Codelco. The labor action has entered second week. As per reports, labor unions have voted to continue the strike, turning down the latest offer put forward by the company.

The striking workers had tried to block access to the site, which in turn led to clashes between workers and police. Following this, the company had come up with a revised proposal, in which it put forward some enhancements to worker’s retirement plan benefits. However, the unions rejected the offer by vote, saying that the perks were not enough and that it failed to meet their demands for a better healthcare package. Hector Milla, president of one among the three striking unions stated that the workers are not willing to settle for crumbs.

Codelco, in a statement, noted that the latest proposal was its final offer. It must be noted that the company can now come up with a new offer only after five days.

According to estimates, Codelco has already lost millions of dollars on account of lost production from its flagship copper mine. Estimates suggest that the daily impact of the strike comes to nearly $2.5 million in revenue and around 3,500 tonnes in production. This indicates that the week-long strike has already resulted in losses of approximately $17.5 million in revenues due to lost production of at least 3,500 tonnes.

Nearly 3,200 unionized workers at Codelco’s Chuquicamata copper mine had initiated strike action last Friday demanding better health care and retirement benefits.