Interesting piece in The Wall Street Journal today:
Mine Unions Call Strikes to Obtain A Share of Profits
By KRIS MAHERHigh prices for copper, nickel and other commodities are emboldening miners unions world-wide to stage strikes in hopes of getting better pay and benefits for workers.
Concerns over labor-related supply disruptions have contributed to higher prices. Mining companies, arguing that these price peaks are a passing phenomenon, say they shouldn't get locked into rich labor contracts that will haunt them after prices ease.
About 2,000 miners at Chile's Escondida copper mine have been on strike for more than a week, demanding, among other things, $30,000 bonuses to return to work. South African iron-ore miners just ended a weeklong strike where they won pay raises of as much as 9%. Workers at Canada's Voisey's Bay Nickel Co., a subsidiary of Toronto-based Inco Ltd., walked off the job late last month after they failed to reach a contract.
Behind this wave of unrest is the view among many union leaders that the time is ripe for action. Profits have soared along with commodity prices. At the same time, the limited number of skilled miners in some countries is making it harder for companies to bring in replacements during strikes.
Within days of the strike at the Escondida mine in Chile, copper prices hit a four-week high on concerns the strike could hurt copper supplies. BHP Billiton PLC, the majority owner of the mine, declared force majeure -- a contract clause that frees one or both parties from liability when an event outside their control takes place -- to protect itself legally against penalties for not fulfilling contracts with smelters.
"Historically, it's been a cyclical industry, which is why the companies are reluctant to agree to these high wage demands," says David Duckworth, a copper analyst with CRU, a London commodity-research firm. "We're in uncharted territory at the moment."
Escondida union spokesman Pedro Marin said after copper prices hit record lows in 2001, workers reduced contract demands in the hopes of keeping their jobs. Now workers want their share of the windfall. "Just like we were there during the seven years of drought, now we want to be part of the seven years of plenty," Mr. Marin said.
Illtud Harri, BHP Billiton spokesman, said miners at Escondida earn $40,000 a year, on average. pppp Last week, Kumba Resources Ltd., a major South African iron-ore producer, reached a one-year agreement with more than 6,000 workers following a weeklong strike. The company granted 7.75% wage increases for many highly skilled miners and 9% increases for many lower-skilled workers. Although this was less than the 15% the union initially sought, Eddie Majadibodu, of the National Union of Mineworkers, representing 4,000 workers at Kumba Resources, said most workers were satisfied.
are there any contracts/campaigns/situations where the union gets or is fighting for pay and benefits that are tied to the profits. that is, perhaps it's part of their contract that they get a certain percentage of the profits.
also, are there contracts where the union/workers get to elect a number of members onto the corporation's board of directors (like the codetermination stuff they have in Germany).
Posted by: anon | August 17, 2006 at 01:10 AM