Strike has lasted 43 days
ANTOFAGASTA, Chile (Reuters) — The strike at Escondida, the world's largest copper mine, will end after workers decided to invoke a legal provision that allows them to extend their old contract, the union said on Thursday.
The workers said they would present their decision to the government on Friday and return to work on Saturday at Escondida, which is operated by BHP Billiton.
The so-called Article 369 will allow workers to revert to their previous contract for 18 months, after which both sides must again try to reach a new agreement.
The workers will be able to enjoy current benefits and working conditions, which the company wants to change, and hold the next talks under the umbrella of an upcoming labour reform that strengthens their hand. But they would also lose out on a bonus typically paid when the contract is signed and on any pay raise.
A swift restart in output at Escondida, which produced about 5 per cent of the world's copper last year, would probably weigh on copper prices and provide some relief to the Chilean economy after a strike that has lasted 43 days.
But the use of Article 369 would be "complex" for the company, mine President Marcelo Castillo said earlier on Thursday.
"Having collective talks in 18 months ... would require us to revise our plan, our operating model, our structure in order to allow us to make our mining business viable," he said.
