UPDATE: Strike At Peru's Cerro Verde Enters 13th Day
October 11 2011 - 2:57PM
Dow Jones News
An indefinite strike at Peruvian copper producer Sociedad Minera
Cerro Verde SA (CVERDEC1.VL) entered its 13th day on Tuesday, while
negotiations aimed at ending the walkout are scheduled later this
week, a union official said.
Union leader Leoncio Amudio said during a telephone interview on
Tuesday that government-brokered talks with Cerro Verde are
scheduled for Wednesday and Thursday.
Workers at Cerro Verde, Peru's third-biggest copper producer,
went on strike on Sept. 29 to seek higher pay amid negotiations for
a new collective agreement.
Shortly after the strike began, the company said that the
walkout hadn't affected production as the company was operating the
facilities with supervisors and other personnel.
Eric Kinneberg, director of external communications for
U.S.-based Freeport-McMoRan Copper & Gold Inc. (FCX), said
Tuesday that there has been no change. "We do not have an updated
statement. The previous statement still applies," Kinneberg said by
email.
Union officials have looked to paralyze operations at Cerro
Verde by pressing for labor inspectors to declare that the company
isn't complying with regulations. According to Amudio, inspections
over the weekend found "various violations."
An Oct. 10 report by inspectors from the Labor Ministry said
that Cerro Verde must comply with the union's right to strike by
suspending its use of temporary workers that it has used to replace
the more than 1,000 union members. The inspectors said that Cerro
Verde has until Wednesday to comply with the regulation.
Amudio said that the union may also appeal to international
labor groups to put pressure on Cerro Verde, as workers aim to halt
production.
Cerro Verde produced 170 million pounds of copper in the second
quarter of this year, up from 166 million pounds in the same period
in 2010.
Freeport-McMoRan has a majority stake of Cerro Verde. Compania
de Minas Buenaventura SAA (BVN, BUENAVC1.VL) and a subsidiary of
Sumitomo Corp. (SSUMY, 8053.TO) also have an interest in the
company.
Peru is the world's second-biggest copper producer.
-By Ryan Dube, Dow Jones Newswires; 51-945 043 802;
peru@dowjones.com
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