Minera Escondida's Union No. 2 of Supervisors and Staff approved BHP's latest offer this Wednesday with 64.14% of the votes. This ended the strike that threatened to partially halt operations at the world's largest copper mine, located in the Antofagasta Region.
According to CNN Chile, of the 1,020 workers called to vote, 35.85% rejected the proposal and 70 people did not vote. The new collective agreement will run from 2026 to 2029.
The central figure is the payment for concluding negotiations, set at $30 million. That amount includes a soft loan of $3 million, meaning a loan with more favorable terms than a bank would offer, according to Diario Financiero. ADN Radio reported that the company initially offered $23.5 million and increased its offer over the following weeks.
There is also a vacation bonus of $1.5 million, which will be paid unconditionally in November. The contract also adds a new location allowance and education reimbursement.
Among the adjustments, the transport bonus rises 56% to $350 thousand. The lunch allowance increases 16% and the night-shift bonus 53%. The main bonuses and allowances will be adjusted every six months according to the CPI (Consumer Price Index, the indicator that measures inflation). In practice, this prevents rising prices from eating into those amounts.
Bonuses tied to production and efficiency, known as MAV and BRE, also improve, as does the bonus for operational continuity. BRE payments begin when the company reaches 90% of its target and reach $6 million if achievement exceeds 101%. It works like a salesperson's commission: the closer the mine gets to its target, the more each worker receives.
The agreement also creates an allowance of 3% of monthly base pay for those working in Coloso, the industrial area from which the mineral is shipped. It adds payments for replacement and acting duties of up to 35% of daily base pay, a 10% incentive for in-person attendance, and improvements to maternity and nursery benefits.
The union explained that it had previously rejected two company offers and set up a strike camp outside the mine. In late September, 94.8% of members had voted to strike, according to ADN Radio. Union leaders said that despite the "countless disagreements and clashes", union pressure had secured "better and greater benefits".
The agreement came after mediation before the Labor Directorate, the public agency that oversees compliance with labor laws. Its national director, David Oddó, was in Antofagasta and said the institution "does not replace those negotiating or impose solutions".
To put this group in context: supervisory and staff positions typically serve as a pipeline for Escondida's executive roles. According to industry sources cited by CNN Chile, their monthly pay, including bonuses, ranges from $8 million to $9 million. The settlement bonus therefore amounts to more than three months' pay for this group, and the first actual payment workers will receive will be November's vacation bonus.