Minera Escondida and Supervisors and Staff Union No. 2 reached a preliminary contract agreement in the early hours of Wednesday, October 14. This averted the strike the union had announced for the day's first shift at the world's largest copper deposit, located in the Antofagasta Region.
The turnaround came just hours after the union declared that talks had failed. According to T13, the organization had announced it would go on strike and blamed the company for the breakdown: "Minera Escondida Ltda. decided not to respond and broke off negotiations," it said in a statement.
According to ADN Radio, both sides met again after the mediator summoned them once more and drafted a new collective agreement, meaning the document that sets wages, bonuses and working conditions for the coming years. The text still needs to be put to a vote by union members.
So far, neither the company nor the union has issued an official statement with the final terms. Some points from the talks are known: the possibility of implementing 14x14 shifts (14 days of work and 14 days off) in contingency situations, and training supervisors to carry out operational duties at the plant or mine site.
The company's last known financial offer included final payments and a soft loan, meaning one with more favorable terms than a bank's, totaling around US$30 thousand per worker. It has not been confirmed whether that figure remained in the preliminary agreement.
The dispute had focused on wage adjustments, monthly production bonuses, performance evaluations and benefits upon completion of negotiations. The union also rejected conditions proposed during the process, such as providing biometric data (fingerprints or facial features that identify a person) to third parties.
Another point of friction was the possibility of supervisors replacing striking workers from other unions. The union maintained that those proposals could affect its members' labor rights.
Before the agreement, the union said that on Monday, October 12, it had submitted a proposal incorporating 90% of the company's proposals, along with its own priority demands. According to its account, the mining company did not respond, and Mandatory Mediation, the process conducted by the Labor Directorate before a strike, ended without an agreement.
Escondida's significance explains why a stoppage raised concerns beyond the mine site. A shutdown at the world's largest copper mine can affect production of Chile's main export. The next step is the members' vote, which will determine whether the preliminary agreement becomes a contract or whether a strike is back on the table.