The favorable copper price cycle during the past year had an impact on the figures, in addition to economic, political, social and health factors.
Vantaz Group published the third report on collective bargaining in the mining industry for the year 2021, a period in which an increase in the percentage of regulated processes (versus those anticipated) was recorded, as well as an increase in the number of conflict termination bonuses and in the number of strikes.
According to the report, during the past year, 33 negotiations were closed, of which 19 were regulated and 14 early, reversing what happened in 2020. "We believe that this is rather the historical trend, and that 2020 was an exception, with most of the negotiations anticipated due to the effect of the pandemic. The year 2021 is also affected by the complex political scenario (the number of elections that took place), economic, social and health issues, and also by the high price of copper, which we have seen does have an impact on negotiations", comments Daniela Desormeaux, Director of Research at Vantaz Group.
Regarding conflict termination bonuses, the average amount in 2021 increased by 18% compared to the previous year, with the highest values being recorded in regulated negotiations. "It is important to note that not all benefits are in cash. There are also other types of benefits, which in most cases are unknown at the public level, and which are highly valued by workers", explains the research director of Vantaz Group.
Finally, when analyzing the strikes associated with collective bargaining in 2021, the report states that five strikes were recorded during the period, the highest number since Vantaz Group has been conducting this survey. "Last year there was a greater sense of 'normality' in the market with respect to the pandemic compared to 2020, which undoubtedly had an impact on this figure. In addition, the high price of copper also has an influence in terms of pressures to negotiate more favorable conditions for workers. If one looks back, there is a correlation between bonuses and the red metal price cycle," adds Daniela Desormeaux.
2022 Projection
According to the Mining Council's calendar, in 2022 there will be 29 collective bargaining processes among the different mining companies, highlighting the processes of five different unions at TECK, AMSA, and four at SCM.
For Juan Cariamo, partner and Co CEO of Vantaz Group, "the scenario will be complex, due to the uncertainty regarding possible changes in the regulatory environment, among other risks. There is also uncertainty regarding the evolution of the pandemic, in terms of whether new and increasingly contagious variants will continue to be observed, and how this will affect the operation and also, of course, the copper price cycle, which we believe will be favorable, as in 2021".
Download the file "Collective bargaining 2021".
