Unionized workers at Chile’s Codelco, the world’s largest copper miner, joined Wednesday thousands engaged in strike actions nation-wide, which have quickly degenerated into widespread violence leaving at least 15 dead, over 1,600 in detention and seen six major cities under state of emergency.
The Copper Workers Federation (FTC), representing those in the industry beyond the companies they work for, immediately followed suit. They also asked members not to board buses at the end of their night shifts, which is now happening at curfew, and announced a meeting at the end of the week to analyze the situation again and consider future actions.
Protests are entering a new phase as Chile’s powerful copper-mining unions are encouraging members to down tools and join nation-wise demonstrations.
The 48-hour stoppage is going ahead despite Chile’s President, Sebastian Piñera, announced late last night some concessions, including a guaranteed minimum wage of about $3.5 an hour, raising maximum income tax rate to 40% from 35% and lifting basic pensions by 20%.
Antofagasta plc (LON:ANTO), which has four mines in Chile
and employs about 19,000 people, said Wednesday it expected disruptions in its
supply chain and production to dent output by about 5,000 tonnes.
Delivering results for the three months to September, the miner kept its 2019 production guidance unchanged for now at 750-790,000 tonnes of copper. It cautioned, however, that 2020 production would be between 725-755,000 tonnes of copper due mostly to grades decline at its Centinela mine.
On Tuesday, workers at the Escondida, the world’s largest copper mine, partially paralyzed work in support of the demonstrations.
Latin spring?
Chile is the fourth major South American state to be wracked
by civil unrest ostensibly triggered by increased government fees and charges
but ultimately fuelled by a gathering sense of economic inequity.
Tensions continue to rise on the streets of the Bolivia’s
administrative capital La Paz, with angry crowds accusing authorities of fraud
in Sunday’s presidential election.
Protesters and the opposition claim electoral authorities
manipulated the vote count in favor of President Evo Morales, the nation’s long-time
socialist leader.
Earlier this month, Ecuador’s government was forced to retreat from capital Quito after cuts to fuel subsidies, since then scrapped, immediately doubled prices and released two weeks of violent protest.
Peru’s capital, Lima, also saw widespread violence following
the President Martín Vizcarra’s decision to dissolve opposition-controlled congress,
accusing lawmakers of trying to his efforts to end corruption.
In September, the streets of Argentina’s Buenos Aires were occupied
by demonstrators complaining against food shortages, wages and the potential
that the debt-crushed nation’s next IMF bailout would require even more drastic
economic measures.