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Reuters reported that miners in the copper industry are facing the largest round of contract negotiations since 2011. Conditions are straining relations between workers and operators, as workers are not scaling back demands in light of low copper prices.
Reuters reported that miners in the copper industry are facing the largest round of contract negotiations since 2011. Conditions are straining relations between workers and operators, as workers are not scaling back demands in light of low copper prices. Miners such as Freeport McMoRan (NYSE:FCX) Teck (TSX:TCK.B) and Souther Copper (NYSE:SCCO) own mines where contract negotiations are up this year.
As quoted in the publication:
The copper market seems to be perilously indifferent to the threat posed by this year’s contract talks at mines including one of the world’s largest, Grasberg in Indonesia, and Antamina, Peru’s biggest, risking a bullish shock if workers move to strike, analysts said.
“I think people are assuming with the change in the market, it’s going to automatically mean unions will be more flexible. � But it could be a very tough situation,” Juan Carlos Guajardo, executive director of Santiago-based mining consulting firm Plusmining, said.
Last year, Antofagasta agreed to four-year contracts, including pay increases and cash bonuses, at its mines across Chile.
But the outcome of talks at Antamina and Grasberg, where contracts expire in July and September, respectively, and worker unrest that has paralyzed production recently, may set the tone for the industry this year.