Union workers halt zinc smelter in Peru (July 02, 2001)

Denver — Production of refined zinc at the Cajamarquilla smelter near Lima, Peru, has ceased after 350 unionized workers walked off the job.

The union and Cominco (CLT-T), which owns 82% of the plant, failed to negotiate a new labour contract. The old one expired at the end of last year.

The two sides are at odds over the pay scale. Cominco declined to give specific information other than to say that it has guaranteed pay increases above the inflation rate, improvements in monetary allowances, and yearly closing bonuses.

The company and the union both agree that the deal should cover three years. Cominco wants the contract to ensure labour stability during the US$300-million expansion project, which is designed to double annual production to 240,000 tonnes of refined copper.

A hundred employees are still working at Cajamarquilla, including staff and members of a second union. The plant is currently producing only cathode zinc.

Production reached 34,000 tonnes of refined zinc in the first quarter, though Cominco would not speculate on what affect the strike will have on second quarter or year-end figures.