BHP (ASX:BHP) and the supervisors’ union at its Escondida mine in Chile have struck a deal over improved compensation and benefits, avoiding a strike at the world’s largest copper mine, both parties said on Wednesday.
The threat of a stoppage at Escondida had helped support copper prices and, along with low LME copper inventories, fuelled supply concerns for the metal widely used in the power, construction, and manufacturing sectors.
The union said in a statement announcing the deal that 64% of its members had accepted the company’s proposal while 35% refused.
“The offer presented today is approved by the union, thus concluding the 2026 regulated collective bargaining process,” it added.
BHP said that the new contract is valid for 36 months and includes improvements in fixed and variable compensation and current benefits, also incorporating new bonuses and other benefits.
Two sources familiar with the talks had earlier told Reuters that negotiators struck a tentative deal after the company improved its offer.
“The parties reached a pre-agreement that includes improved benefits and better closing terms than the offer presented by the company on 12 October,” the union had said in an earlier statement.
BHP’s previous offer included final payments and a low-interest loan package worth about US$30,000 ($43,035) per worker.
The talks began hours earlier on Tuesday in a last-minute push to avoid a walkout that risked disrupting supply from a mine central to the global copper market.
The union had warned it was prepared to strike as early as Wednesday if mediation failed to produce a new collective labor agreement.
(Reporting by Fabian Cambero; Writing by Aida Pelaez-Fernandez and Paolo Laudani; Editing by Mark Potter and Sanjeev Miglani)
Main image: BHP Group
