Unionized workers at Chile鈥檚 Escondida copper mine, the world鈥檚 largest, will stage a 24 hours-long strike on Tuesday in solidarity with ongoing massive protests sparked by a now suspended metro fare hike, as locals vent their discontent over the high cost of living and in one of Latin America鈥檚 most stable nations.
Union No.1, representing about 2,500 mineworkers,聽has called miners across the country to join the labour action in order to 鈥減aralyze all mining in Chile, until military and oppressive forces are removed from the streets,鈥� according to a .
Umbrella group of unions and mining federations, CTMIN, echoed Escondida鈥檚 workers cry and is calling for a general mining strike on October 23. It has especially asked its members to 鈥減rotect their families and demonstrate peacefully for a fairer society.鈥�
Chileans are venting years of discontent over the high cost of living, expensive health care and extreme inequality
CTMIN includes the Federation of Unions of Antofagasta Minerals (FESAM), Federation of Supervisors of Private Mining, federation of Codelco professional workers FESUC. Another organization signing the statement is mining federation FMC, which includes unions from Collahuasi, Anglo American鈥檚 Los Bronces, Teck鈥檚 Quebrada Blanca, Antofagasta鈥檚 Los Pelambres and Zaldivar, Freeport鈥檚 El Abra and BHP鈥檚 Spence.
The planned stoppage risks disrupting copper supply from the world鈥檚 largest producer, with ports already being impacted by protests.聽Copper exports make up for about 60% of Chile鈥檚 earnings.
鈥淪trikes are not uncommon in Chile, which explains why the impact on copper price thus far has been limited,鈥� BMO Metals analyst, Colin Hamilton, writes. 鈥淗owever, the bigger issue may be the pressure from the unions on the government to increase the royalty level on copper concentrate exports to fund public projects. This would further dissuade investment in Chilean mine developments, in a sector where copper output has essentially stagnated since 2004.鈥�
The protests began last Monday聽when,聽alleging high fuel prices and the devaluation of the peso, the government announced a 4% increase in subway fares. After declaring a state of emergency due to the civil unrest caused by the measure 鈥� which was also announced a few weeks after a 10% hike in electricity bills was put in place 鈥� President Sebasti谩n Pi帽era suspended the fare hike on Saturday.聽
However, ongoing clashes between authorities and protesters have not stopped, resulting in at least eight deaths and hundreds of arrests, as well as looted supermarkets, burning buses and charred underground stations in capital Santiago and other major cities.聽
Brutal inequality
For the first time after the end of dictator Augusto Pinochet鈥檚 regime in 1990, the current centre-right administration has called the military onto the streets of Santiago on Monday, as it emerges from its third consecutive night of a government-imposed curfew.
鈥淲e are at war with a powerful, relentless enemy that respects nothing or anyone and is willing to use violence and crime without any limits,鈥� the president, Sebasti谩n Pi帽era, said on Sunday in a televised and unscheduled speech from the military headquarters.
鈥淭his had little to do with public transit. It became a situation about brutal inequality鈥�
Rodrigo Booth, University of Chile Professor
Political scientist聽Guillermo Holzmann, at the University of Valpara铆so, blamed 鈥渁n accumulation of factors鈥� for the protests. Frustration over the economy, the rising price of water, electricity and transportation 鈥� all these factors have played a part and are worsened by an increase in crime and corruption, he said.
鈥淧eople feel the state is inefficient, it doesn鈥檛 protect them, and the market abuses them,鈥� Holzmann noted. 鈥淭he metro fare was the last straw.鈥�
鈥淭his was an economic pressure cooker that鈥檚 been building for decades, and it exploded,鈥� Rodrigo Booth, a professor at the University of Chile, . 鈥淭his had little to do with public transit. It became a situation about brutal inequality.鈥�
Escondida, majority owned by the world鈥檚 largest mining company BHP (ASX, NYSE: BHP), produced 1,242,687 tonnes of copper last year, a 34% increase over 2017, when it was hit by a 44-day strike. That became the longest private-sector mining strike in the South American country鈥檚 history.