Codelco contractors strike for share of windfall

Chilean copper giant Codelco faced a strike by about half of its contract workers, with protests at the El Teniente mine turning violent.

The company said about 10,000 of the 28,000 contract workers — employees of firms under contract to Codelco for construction, maintenance, and other services — were on strike. Organizers of the strike put the number at about 14,000. There were strikes at four of the company’s five major divisions, El Teniente, Andina, Ventanas, and Norte.

The workers are seeking bonuses of around 500,000 Chilean pesos, about $1,120, as a share of the rising copper price. The company rejected the demand, saying that there was no contractual or legal obligation to pay a bonus based on a price increase.

Codelco’s executive president, Juan Villarzu, said the contractors were trying to “take advantage of the political situation to blackmail Codelco,” alluding to the upcoming runoff election for the company’s presidency, where Michele Bachelet of the Socialist party is running against independent right-wing candidate Sebastian Pinera.

Contract workers rioted on the road between Rancagua and El Teniente, leading to the arrest of more than 40 protestors, wire reports said. Police had attempted to disperse the protestors using tear gas. Two police were injured. Workers from the Andina division blocked national highway 60 leading to the Argentine border.

Codelco said there was no immediate effect on production. Its own workforce, which was not on strike, numbers about 14,000.