Antamina production remains stable despite the strike
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Today, a ship sailed from the mine shipping port carrying 45,000 tons of copper concentrate to Asia.
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Strike contingency plan allows Antamina to maintain 2014 forecasted production. Over the past few hours, more workers have returned to their jobs. The strike has been declared illegal by the Regional Directorate of Labor.
Antamina’s production levels have been minimally affected as a combination of non-union and union workers support a contingency plan that was prepared in advance. This is why Antamina maintains its production volume forecast for the year.
This week, during the strike, the “Torm Regina” vessel arrived at the mining port of Punta Lobitos at Huarmey, to be loaded with more than 45,000 tons of fine copper concentrate from Antamina, to be transported to a destination in Asia.
The company maintains the desire to establish a dialogue process, but unhindered by pressure of a strike. For this reason it has invited union workers currently on strike to stop their actions and return to their normal job positions. “At Antamina we believe in dialogue. Let’s look to the future and keep working together for our families and the development of Ancash and Peru” said Silvio Brigneti, Antamina Vice President of Human Resources and Security.
With respect to the reason for the strike, we must be clear about the normal conditions for a frontline worker at Antamina: Over the course of one work year, an average Antamina frontline worker receives 14 monthly salaries plus 12 different bonuses and allowances. In addition to that, a worker receives a substantial amount attributable to profit sharing, which at least from 2006 through 2012, always reached the maximum payout allowed by law; i.e. 18 monthly salaries in addition the 14 monthly salaries and 12 bonuses and allowances. However, this year, the amount of profit sharing for everyone at Antamina has declined, mainly due to the reduction in the price of copper, but also due to the temporary decrease (both expected and anticipated) in the ore grades that the company is producing. This means that in 2014, an average frontline worker at Antamina will receive 27 monthly salaries plus bonuses and allowances, instead of the 33 monthly salaries the worker is used to receiving.
Having said that, the union strike at Antamina is not related in any way to any default on the Collective Bargaining Agreement, which is in effect until July 2015 and is in full compliance. The strike, as plainly stated by the union representatives themselves in a letter addressed to the Ministry of Labor and Compania Minera Antamina, specifically refers to their claim as being associated with the amount of profit sharing to be distributed.
RESOLUTION: PROCEED TO GO ON INDEFINITE STRIKE AS OF 00:00 HOURS ON MONDAY, NOVEMBER 10, 2014, to demand a solution to our worker claim listed on our Dispute Platform that constitutes the reason for the strike:
- For the payment of fair and reasonable 2014 Worker Profit Sharing benefits.
“We understand the concern of our employees; however, it is important to understand that the Union claim does not refer to salary appropriation or alleged industrial safety matters. Rather it refers to a situation related to the decline in the price of copper and the lower level of production at Antamina this year. ”, explained Jose Carlos del Valle, Vice President of Finance at Antamina.
November 13th, 2014
Office of Corporate Communications
Compañía Minera Antamina S.A.
