Chuquicamata workers Retirement Plan adds little grip
To date only 200 employees have accepted the exit agreement signed by the company with unions in December 2012?s collective bargaining
In December 2012, the Codelco’s administration agreed with Chuquicamata workers in the new collective agreement for the next four years. This major milestone was to pay a bonus term trading for $ 16.8 million plus $ 3 million soft loan per person.
The historical figure given by the state company was defended, then, by the Chief Executive Thomas Keller. The latter explained that workers with a massive retirement plan involving 2,200 people within four years was agreed.
However, the program has not gone as expected in the company. A year after signing the agreement, less than 10% of workers in the field located in Calama have decided to leave the corporation. According to information from the mining company to date are only 200 employees who have accepted the conditions proposed by the state company to leave the firm. This number also represents 50% of the goal set for 2014, where 400 people out of the division was estimated.
According to sources from the unions, the reason for the low number of people who have taken retirement has, to a large extent, with the agreement signed with the company is voluntary.
“As there is no obligation to comply with this requirement in collective bargaining, many workers have chosen to remain with the company until the end,” says the president of one of the unions of the division.-
Moreover, same workers add, also plays against withdrawal of retirement monies. At this point there are several less than 60 years old decide to stay in the company because the compensation monies not allow them to support their families in the future.
Finally, there is also the factor of trading. Inside Codelco said many employees are awaiting the company present new benefits as leverage to accelerate graduation.
Importance of the plan
In early 2013 the Chuquicamata division accounted for 6,767 workers themselves. That number has been branded excessive if it consider that there are only 1,000 employees at Radomiro Tomic plant and their production numbers exceed 350 thousand in Calama open pit.
For this, the state company held, it is not feasible Chuquicamata’s operation continue with such high endowment in the future. More if the corporation aims to develop Chuquicmata structural underground project, which will allow the division to maintain their level of production for the next 20 years.
Currently the site provides only 2% of the profits of the company and its direct costs (C1) will rear up in the $ 1.77 per pound.
Against this backdrop, the corporation argue, that the off 2,200 workers made economically sustainable “Chuquicamata underground” Operation. However, the relationship with the unions has not been easy. In the last week the site has faced the suspension of the workers of Chuquicamata smelter, which demand improvements in wages and contracts.-
Chuquicamata Underground is one of the main Codelco’s projects seeks to extend the useful life of the site. The start of the operation is designed later this decade. The underground mine in solitary produce annually 340,000 tons of copper and more than 18 tons of fine molybdenum.
The fact that the retirement agreement is voluntary is the main reason for the delay of the program, say sources from the unions.
Source: El Mercurio
