BHP offers 23.5M Chilean pesos to avert strike at Escondida

Minera Escondida, controlled by BHP Group Limited, presented on Tuesday, September 22, its final contract offer to Union N°2 of Supervisors and Staff. The proposal covers a 36-month term and offers 23.5 million Chilean pesos net in closing conditions, including an end-of-negotiation bonus and a soft loan of 3 million Chilean pesos repayable over three years.

The company proposed multiple compensation increases, including a 33% increase in the travel bonus for workers residing outside Antofagasta to 300,000 Chilean pesos monthly. It also outlined raises of 32% for occupational health exams on rest days, 16% for lunch allowances, 53% for night-shift bonuses, and replacement pay bumps ranging between 10% and 35%, alongside twice-yearly inflation adjustments.

BHP stated that the package comes amid lower production levels, cost pressures, and ongoing capital expenditures required to sustain long-term productive capacity. Operations at the copper mine continue normally for now.

The union leadership called the proposal insufficient and rejected proposed multifunctionality rules and a 14x14 shift schedule. Alexis Barra, president of Union N°2, noted that Escondida generated US$6,732 million in profit during the last fiscal year, while the union's US$69.5 million petition seeks an end-of-conflict bonus of 30 million Chilean pesos per member. Union assemblies are scheduled before members vote on the offer on September 28, 29, and 30.