Union at BHP’s Escondida mine says company made ‘illegal’ offer amid negotiations

The union representing workers at BHP’s Escondida mine in Chile told its members on Monday that it would accuse the company of “anti-union practices” for making a contract offer outside of a government-mandated mediation process.

The company and the powerful workers’ union have been in a five-day period of government mediation, due to expire at midnight on Monday, aimed at preventing a strike after workers overwhelmingly rejected a previous contract offer from BHP during a formal negotiation period.

In an internal memo to members seen by Reuters, the union said that BHP made an offer to union members on Monday afternoon “in an illegal manner” as negotiations were ongoing.

“The company has spread this offer to the workers without previously presenting it, as it should, to the Union Negotiating Commission,” the memo said.

“The maneuver … shows a clear bad faith on part of the company,” the memo added.

The company’s offer on Monday included a bonus equivalent to about $28,900 per union member, according to a source close to the negotiations, who declined to be named due to their private nature.

BHP did not respond to a request for comment.

Company and union representatives were due to meet at 6:30 p.m. local time (2230 GMT) on Monday in the northern Chilean city of Antofagasta.

(By Fabian Cambero and Brendan O’Boyle; Editing by Anthony Esposito and Jamie Freed)