Centinela Copper Output Rises as Workers Strike

Antofagasta Minerals reported a 7% rise in third-quarter copper output while more than 700 workers represented by two unions remained on strike over alleged unequal pay and benefits. The company said production continued as planned and kept its full-year forecast at 625,000 to 655,000 metric tons. Talks with the unions showed no progress on Thursday, October 15.

The Distrito Centinela and Minera Esperanza unions began their walkout on October 7 after contract negotiations collapsed. The sides returned to the table on Tuesday. Three workers marked their seventh day on a hunger strike Thursday. The dispute over pay and treatment remained unresolved.

The dispute over equal treatment

The unions said the company had refused to address what they called the central issue in negotiations: alleged differences in pay and benefits for workers doing similar jobs at the mine. Their statement called those differences alleged violations of workers’ fundamental rights to equal treatment and non-discrimination.

“So far, after three days of voluntary mediation, the company has refused to address a mechanism to end discrimination during the term of the collective agreement,” the unions said. They added that Antofagasta kept presenting a financial offer workers had already rejected, without addressing the alleged unequal treatment they raised.

The walkout followed the collapse of contract talks. More than 700 workers belong to the two unions, which linked their dispute to the terms and application of the collective agreement. The company and unions returned to negotiations on Tuesday, but no progress had been reported by Thursday.

Output continues as workers withhold labor

Antofagasta said Wednesday it had kept production running as planned. On Thursday, it reported higher third-quarter output and maintained its annual forecast. Those figures came as the strike continued, and the unions said the financial offer on the table didn't resolve their main complaint.

The company reaffirmed its willingness to seek an agreement and said dialogue that week had opened the possibility of a deal. It also said it opposed a hunger strike that could put workers’ health and lives at risk. According to the report, three workers were on their seventh day of hunger strike Thursday.

Copper prices and the labor dispute

The Centinela strike has supported global copper prices, the report said, along with the ultimately averted risk of a supervisors’ stoppage at Escondida. Concerns that supply may be difficult to expand enough to meet expected future demand have also supported prices. The account didn't report a government role in the negotiations or identify a government proposal to resolve the dispute.

For Centinela workers, the stated issue remains alleged differences in pay and benefits for similar jobs. Antofagasta said production was running as planned, third-quarter output had risen 7%, and the full-year forecast remained unchanged. The unions said the company hadn't addressed their demand for a mechanism against discrimination during the collective agreement. By Thursday, the talks had produced no reported breakthrough.