Fresh Tentative Agreement at Escondida Copper Mine Averts Strike Fears

SEATTLE (Scrap Monster): BHP Group Ltd. and workers’ union at Chile’s Escondida copper mine have reached a tentative agreement for a new contract. Meantime, the union will take another couple of days to submit the new contract to workers for a vote. The deal was reached during the extended government-mediated talks, aimed at finding a last minute deal to avoid potential strike.

Earlier reports had suggested that the union leaders and the company management were getting closer on a wage deal, following reports that the company has agreed to some of the demands put forth by the union. Also, BHP had warned that it would not improve the offer in the event of a strike action.

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The deal at Escondida is expected to ease labour tensions in other Chilean mines. Recently, workers at the mine owned by JX Nippon Mining & Metals had opted to walk off the job, following failure of talks with the management. Meantime, the two sides have reportedly reached an agreement to extend talks at the Codelco’s Andina mine.

The union representatives at the world’s largest copper mine have been engaged in negotiations with the company officials for more than two months now.

A potential strike action could have further limited the supply of the metal, thus resulting in higher copper prices.