Workers at the world's No. 3 copper mine, Chile's Collahuasi, put down their tools over unmet labor demands on Saturday, compounding worker unrest as a strike at top global copper mine Escondida entered a ninth day. Workers at Collahuasi voted to strike for 24 hours and will end the stoppage at 8:00 A.M. EST (11:00 GMT), union leader Cristian Arancibia told Reuters. Other leaders said earlier the stoppage could be extended if the company did not address their demands. Repeated labor action in top copper producer Chile has fueled supply worries and spurred global copper prices. Escondida, majority owned by BHP Billiton, extracts 7 percent of the world's copper, while Collahuasi accounts for 3.3 percent. While markets fear a contagion, the strike at Collahuasi, owned jointly by Xstrata and Anglo American, appeared to be an isolated example — unions at other mines said they have no plans for immediate stoppages. Collahuasi mine operator said it continued to operate with workers who did not join the action. Workers at the mine said many employees disagreed with the union call for labor action, signaling internal rifts. Still, union leaders said most workers are angry over the way their production bonuses are calculated and believe they should be larger. “This is our first warning,” said Arancibia, who is also the head of a 11,000-strong federation of unions at private mines. “Collahuasi and Escondida show that miners in Chile are ready to fight for their rights.” Collahuasi and Escondida produce nearly a third of all the mined copper in Chile, or about 4,400 tonnes a day. Escondida workers on Friday rejected a new compensation offer from BHP, but acknowledged they were close to a deal and were deadlocked over a bonus demand. Labor negotiations in Chile have turned more volatile in recent years as worker demands have increased with copper prices near record highs. Collahuasi workers staged a 32-day strike six months ago over a new wage contract — the longest labor stoppage ever at a major private mine in Chile. A series of labor protests, accidents and bad weather has curbed the mine's output. Higher copper prices have emboldened workers from Indonesia to Zambia and Chile to demand a bigger slice of the record earnings of global giants like BHP, Freeport McMoran and Anglo American.
