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Peru mine workers prepare for strike next week
13 Oct 2009 20:49:02 GMT
Source: Reuters
(Adds Southern Copper plant not participating in strike)

* Workers plan to strike next Monday, Tuesday

* Federation upset by veto of law lowering retirement age

* Some unions won't participate

By Teresa Cespedes

LIMA, Oct 13 (Reuters) - Peru's national federation of mine workers said on Tuesday it will hold walkouts across the country next week, although some unions have said they will stay on the job and others have yet to vote on the strike.

Since late September, the federation has planned a nationwide strike that would be held on Monday and Tuesday of next week in one of the world's top metals exporters.

The federation is upset that President Alan Garcia rejected a law, initially passed by Congress, to lower the age for retirement. Workers also want Congress to throw out a rule that limits the amount they can earn from profits that are distributed to them by companies.

"We are sticking by our decision to hold a 48-hour strike. Officials from the Labor Ministry have called us but we will go ahead with the protest," Luis Castillo, the federation's director, told Reuters.

The last time miners across Peru downed tools was in mid-2008 and the strike helped push copper prices toward a record high.

Globally, Peru ranks No. 1 in silver output, No. 2 in zinc, No. 3 in copper and tin, No. 4 in lead and No. 6 in gold.

The walkout would be held as minerals prices have gained ground since crashing in late 2008, and mining companies are expected to see higher third-quarter profits after a tough first half of this year.

According to Castillo, the strike will be supported by unions at Volcan <VOL_pb.LM>, one of Peru's top zinc and silver producers, and at the Yanacocha gold mine of Newmont Mining <NEM.N>.

On Wednesday, unions will decide whether they will strike at Freeport-McMoRan's <FCX.N> Cerro Verde mine, Xstrata's <XTA.L> Tintaya mine and at mines of precious metals producer Buenaventura <BVN.LM> <BVN.N>.

So far, unions at the Cuajone and Toquepala mines of Southern Copper <SPC.LM> <PCU.N> have decided to stay at work, union official Walter Chavez said.

Workers at Southern's Ilo smelter also will not support the strike because of a preexisting legal tangle, a union official at the plant said.

In a preview to the nationwide strike, workers at Shougang Hierro Peru <SHP.LM> walked off the job on Sept. 28 to demand the company follow through on a wage accord, but they returned to work at the iron ore mine on Tuesday, the company said. (Editing by Terry Wade and Christian Wiessner)


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Last updated:Tue Oct 13 20:50:59 2009