BHP removes striking workers

Offers $28,900 per worker while union demands dividends worth $36,000

SANTIAGO:

Mining giant BHP said on Tuesday it had started removing workers on strike at its Escondida copper mine in Chile, deepening tensions at the site after a powerful union rejected the company's latest invitation for talks on pay.

The strike at the world's largest copper mine was declared hours earlier after negotiations collapsed and could lead to a major hit to production.

"After a new invitation from the company to reach an agreement, Union No 1 declined to restart talks," BHP said in a statement, referring to the labour group that represents about 2,400 people.

Escondida, which produced 1.1 million metric tonnes of copper last year, said the mine was continuing to operate but did not specify how much operations had been scaled down.

BHP said it began removing striking workers when it activated a contingency plan that allows for "minimum services" and for non-union members to keep working.

Mines typically have plans to reduce operations without affecting facilities or equipment.

Workers walked out as they demanded a bigger slice of copper profits, which have been buoyed by recent high prices.

The union maintains it is willing to return to negotiations, and accused BHP of violating strike terms by replacing workers who walked out, who it said were essential to basic operations.

"We demand the company immediately end this grave anti-union practice," the union said in a statement.

The strike, after the union encouraged members to reject BHP's offer, has stirred up memories of the last major Escondida walkout in 2017, which hit BHP's copper production and pushed up global prices of the metal, which is used to make wiring and nearly every single electronic device.

Analysts said the market was so far staying calm, with hopes for a quick resolution and weaker demand from top copper consumer China dampening the impact. BHP's US-listed shares edged down and copper futures were stable. BHP offered a $28,900 bonus per worker, compared with the union's demand of 1% of shareholder dividends for the mine, which would amount to roughly $36,000.