Copper workers test their power
Unions bank on metal’s rally as wage talks get under way in Chile
A wage negotiation at the world’s leading copper mine is showing producers the downside of recovering prices: workers want their share. Talks began in earnest on Tuesday at BHP Billiton’s Escondida mine in Chile. In a preliminary phase, management rejected demands by Union Number 1 for a 7% pay rise and a bonus of 25-million pesos ($37,000), union spokesman Carlos Allendes said. Workers are scheduled to vote on a final proposal on January 24. BHP did not comment. As the industry emerges from a glut that sank prices, the Escondida negotiations are being keenly watched by producers and investors alike. Unions are emboldened by a 25% price surge since mid-October amid shrinking global stockpiles. But prices and earnings are still a long way from the supercycle heyday of 2011, and shareholders are also looking for a payday by urging management to keeping costs in check to maximise profit. Copper bulls know a prolonged strike would help their cause as the market tightens. "The possibilit...
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