The strike at Chile’s Escondida copper mine, the largest in the world, has been resolved with a new agreement between the union and BHP. The three-year deal, signed on Sunday, includes updates to labor conditions aimed at improving shift changes, equipment utilization, and adherence to the 40-hour workweek law, BHP announced.
The agreement comes after a strike that began on Tuesday over payment disputes. The union had reached a preliminary agreement on Friday, halting the strike temporarily. An internal union memo, reviewed by Reuters, had warned that the strike could resume if the company did not address outstanding contract issues.
BHP’s statement on the deal did not provide additional specifics. However, sources revealed that BHP had offered a $32,000 bonus and $2,000 in soft loans to workers, up from a previous offer of $28,900. The union had initially demanded 1% of shareholder dividends from the mine, equivalent to approximately $35,000 to $36,000 per member.
Following the resolution, LME copper prices saw a 1% increase, trading at $9,211 on Monday, reflecting a positive sentiment across the metals market.
