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Collahuasi and strikers gear up for test of strength
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Thursday, 18 Nov 2010
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Reuters reported that a workers strike at Chile's Collahuasi entered its 13th day as both sides geared up for a test of strength and a local authority sought to revive stalled wage talks.

The operator of the deposit which is jointly owned by Xstrata and Anglo American said that operations at the mine were normal under a contingency plan, but has not clarified what normal means.

The operator and workers have had no contact since wage talks failed on November 4, however, region I intendant Luz Ebensperger told Reuters she is seeking to bring both sides to the negotiating table but with not much progress yet.

The strike is the biggest among private mines in Chile since 26 day stoppage by workers at the world's No 1 copper deposit, Escondida and has pushed up global copper prices. The metal hit a record high of USD 8,966 last Thursday.

The operator of the deposit, which yields 3.3% of the world's mined copper or 1,500 tonnes per day, said it planned to deliver an offer to convince strikers to return to work starting Friday when Chilean law allows them to break the strike without penalties.

Union leaders said that workers will stick together and stay out to press ahead with demands to raise their wages and benefits. Union dissidents could weaken the strike, forcing it to return to talks and take an offer similar to the operator's last proposal that included USD 27,000 in benefits. Workers are not paid while on strike. However, if only a few workers return to work on Friday, it could signal the strike is heading for a long haul.

The 1,551 member union, which claims the mine is running at only 20% of its levels before the strike, has said that workers will remain on strike and even threatened fines for those who return to work.

Union workers nearly unanimously voted to strike after wage negotiations failed earlier in November. Workers are demanding a bigger slice of the mine's record profits as copper prices soar.

(Sourced from Reuters)

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