The world’s largest copper deposit, the Escondida mine, has been in trouble recently. The Copper mine located in Chile has seen negotiations for the new labor contract between workers and the company for the last two months. The procedure is secret.
Both the covid situation and the shortage of copper storage have pushed the powerful worker union to start to negotiate with the company. With the operator BHP delivering a final offer on Monday, this case entered into a crucial phase.
From the BHP statement, we can see that the company proposes to improve the current contract by adding new benefits in the highly valued area. However, both the company and the union have not responded to requests for comments yet.
The negotiation will highly impact the supply of copper, and eventually the price. Hopefully, we can see the results of the final offer; however, we do not have any clues of how the negotiation ends. The union has prepared for this, earning its benefits for a long time. A strike equivalent to or longer than the one in 2017 may or may not take place.
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