🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

UPDATE 1-Largest union at Colombia coal mine Cerrejon on strike

Published 01/09/2020, 07:25 am
Updated 01/09/2020, 07:30 am
© Reuters.
BHP
-
AAL
-
GLEN
-

(Adds quotes from union, company)

BOGOTA, Aug 31 (Reuters) - The largest workers union at the Colombian coal mine Cerrejon walked out on strike on Monday, the group said, after its members voted overwhelmingly to support the move following a collapse in contract negotiations.

Some 99% of members of the Sintracarbon union who voted on possible strike action earlier this month backed the walkout over arbitration.

"Despite the union's efforts to reach a negotiated agreement, we have determined to start the strike today from 03:15 in the afternoon," the union said in a statement.

"Cerrejon's arrogant and imperative attitude caused the failure of the meeting of today despite the mediation of the labor ministry," the union said, adding that it wants resolution not just to contract negotiations but to a disagreement over a new work schedule it calls "the death shift."

Cerrejon, owned equally by BHP Group BHP.AX , Anglo American AAL.L and Glencore GLEN.L , said in a statement it has a plan in place to manage the strike.

"In view of the strike announced by the union, we at Cerrejon have already implemented a contingency plan ... to protect our assets while operations shut down," company vice president Juan Carlos Consuegra said.

Sintracarbon had demanded a 6% salary increase in addition to health, education and housing benefits. Cerrejon offered an increase equal to inflation for 2020 and 2021.

Colombia had 3.80% inflation in 2019. The central bank expects inflation to end this year between 1% and 2%.

The union accuses Cerrejon of looking to cut costs by freezing, reducing and eliminating employee benefits.

Cerrejon employs more than 5,500 workers, including 4,600 union members.

The last strike at Cerrejon in February 2013 lasted 32 days.

Last year, coal prices fell to an average of $51.40 per tonne from $82.50 in the previous year, according to Colombia's energy ministry.

The Andean country is the world's fifth-largest coal exporter. The fuel is its second top source of foreign exchange after oil.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.