Copper: Codelco reaches a labour agreement with the union

Codelco, the world’s largest copper producer, said on Wednesday it had reached an agreement on a labour contract with a union representing workers in its small Salvador division in northern Chile.

The miner and union Benito Tapia Tapia signed a 36-month agreement that includes a $5,200 signing bonus and production-related benefits.

The company’s final contract offer was approved by 61% of the union workers who voted.

Soaring copper prices this year have given unions in Chile more power than in the recent past, increasing tensions in some labour negotiations, including a prolonged strike at the Andean Codelco mine near Santiago.

Salvador, an ageing deposit that has experienced declining ore quality and low productivity, has undertaken a $1.4bn upgrade to extend its life.

The division produced 56,300 tonnes of copper in 2020.