Reuters reported that a strike at Chile's Escondida entered a fourth day with no sign of a solution to the latest labor dispute fueling global supply fears.

Union leaders at the mine majority owned by BHP Billiton said that bosses have refused to resume talks while unionists at state giant Codelco and other private mines have threatened to join the protest if strikers are sacked.

Mr Raimundo Espinoza head of Codelco's labor federation said that if anyone's fired we'll act as a single force. Strict labor laws in the world's top copper producer mean companies can dismiss workers who strike outside scheduled contract talks and Escondida settled 44 month contract with workers in 2009. However, mine employees are demanding an USD 11,000 bonus linked to company earnings.

Union leaders said that the company has offered them half that. Chile has never seen a nationwide, coordinated strike by private miners but the industry has been hampered by a string of protests over the last year including Codelco's first strike in almost two decades earlier this month.

Persistent labor unrest could tarnish Chile's reputation as one of the region's most stable investment destinations and further disrupt global supply of copper, which has already taken a hit from strikes and bad weather this year.

Union leaders at Escondida said that the four day old strike by some 2,375 workers has paralyzed operations at the mine and its main export port, Coloso and that stocks are running low. Escondida, which produces nearly 7% of the world's mined copper, could stand to lose production of about 3,000 tonnes per day during the strike.

(Sourced from Reuters)