2024 Set to Witness Significant Collective Bargaining Activities in Large-Scale Mining
The mining industry is gearing up for a bustling year of collective bargaining in 2024, with 42 negotiation processes involving over 20,000 workers, accounting for 36% of the sector's unionized workforce. This insight comes from the 5th report on Collective Negotiations in the Mining Industry 2024 by the Research Department of Vantaz Group, under the leadership of Daniela Desormeaux.
The analysis draws on last year's bargaining activities, examining the factors that influenced negotiations and forecasting the trends likely to shape the industry this year. Mining's collective bargaining processes are pivotal for Chile, reflecting the sector's significant contribution to the national GDP, its highly unionized nature, and the economic boost from end-of-conflict bonuses and other benefits.
In 2023, the mining sector employed an estimated 278,000 people, with about 55,000 being unionized workers based on data from the Mining Council. The Vantaz Group's study highlighted that 2023 saw 24 collective bargaining processes, impacting 8,400 workers or 15.2% of the total unionized personnel.
The year was marked by various challenges and developments, including geopolitical tensions, inflationary pressures, concerns over China's economic growth, and domestic issues like the Mining Royalty Law, the National Lithium Strategy, and technological advancements such as autonomous trucks and Integrated Operations Centers. These factors influenced the bargaining landscape, with technological changes notably perceived as threats by unions.
Significant negotiations involved major players like Codelco, Antofagasta Minerals, and BHP, with six regulated negotiations taking place. End-of-conflict bonuses averaged $17.5 million, with the highest at $19.6 million by Antofagasta Minerals' Centinela and the lowest by Codelco at $13 million.
The report also noted a trend towards privacy in negotiations, with less public information available compared to previous years. Despite initial rejections of offers, the industry managed to avoid strikes, underscoring a preference for resolution over conflict.
