Lab One: Diffusion And Osmosis

Pay Day

The Escondida negotiations have not succeeded as expected, yesterday the miners, in a show of hands, refused quarter offer the company's rejection Today could be ratified by secret ballot.

At the same time today will turn 15 days into the strike, according to the labor law, from the moment workers can pick up the union and return to work. Workers who take this option, accept a settlement with the company individually, an arrangement that is based on the Ultima Formal Offer of the Company. However and because in theory no more negotiations could be that the company maintains , for those who sag today, the best he has put on the table .

So What determines the lift?.

• From the strength and cohesion that has the union movement,
• From Potential support received from other unions or confederations of workers. In recent days have begun to emerge nationalist sentiments among the strikers and their peers from other companies.
• Del
  pocket of every worker. Recuende that while workers are on strike do not get paid, but also remember that the leaders of the Union of Minera Escondida has been organized and have obtained loans at commercial banks to deal with this situation.

Today verena and resolve those involved in this process. The truth is that the amounts at stake, any Chilean worker had already decided to return to work.

Updated 22/08/06: Escondida posted on its Web site its offer of reinstatement individual, with the conditions of its latest proposal.

How Many Price Goldin Dubai 2010

key to "Strike at Escondida Escondida?

That's right, starting at 8 am on August 7 was paralyzed in tasks Minera Escondida, the largest copper mine production in the world, accounting for 8% of copper production and 23.5% global production of Chile, thus providing 2.5% to our Gross Domestic Product.

More than 2,000 unionized workers in the private mining require that both wages and benefits they receive, reflecting the current moment of celebration that lives the "red gold." Is that when he had seen an average annual price of around $ 3 a pound ? Never in my life. So it was inevitable that the demands of the workers were not kept waiting.

postures involved

The figures given by the union, they left speechless over a Chilean not working in the mining industry. Required: a wage increase of 13% and a bonus term conflict $ 16 million ($ 29,629) per worker. In addition to other benefits .

But last offer Escondida, which many would have accepted without question, was a 3% increase in salaries and a bonus of $ 8 million , (14,800 dollars). In addition to an interest free loan of $ 3 million (5,500 dollars).

At this point you have already reported that the firm pays wages 57% owned by Anglo-Australian consortium BHP Billiton, are not negligible, as are the benefits for workers and their families. So it seems inexplicable paralysis of tasks for the rest of Chileans, is not currently living cyclical copper prices. At least I have said union representatives.

Surely at this point you'll be asking the same question I did a few days ago: Does the high price of copper is a reason to increase wages?. Because for unions if it is. Unions

powerful

And before answer the question we must understand that one of the variables that determine the complex compound wage is bargaining power and union power . Variable that has weighed heavily on other Chilean mining company Codelco, the state where there is a labor movement history and important victories on wages. According to a study of remuneration Ernst & Young developed based on information provided by the top ten mining Chilean state workers earn far more their private peers and the reason?. The pressure from its trade union movement.

Returning to the subject of Minera Escondida and the question asked: Is the high price of copper is a reason to increase wages?. I will answer with another question: Does that high copper prices is a consequence of greater efficiency within the enterprise market is a reason unrelated to work performance?. And we all know is a result of increased demand ore.

Labour Productivity

So, under what arguments are expected to increase salaries?.

no doubt: when the marginal productivity of labor increases, as it ensures recognize the contribution of workers in the increase of the product, without which the income gap between employers and workers would be expanded gradually.

So in this case: Is there a greater productivity at work at Minera Escondida workers?. According to statements by company executives' productivity has not grown over the past two years. " Therefore, higher wages are not consistent with improvements in productivity are a worrying sign, which would only increase costs production of the company, less competitive when commodity prices fall. Finally

be a single argument to be analyzed and is linked to a factor of "equity" by higher revenues the company would be receiving by way of a higher price of copper. Debatable point, but present on the table. In this sense, the bonds are the most suitable alternative because it would correct a certain way by higher earnings on price, causing a redistribution of wealth from the company to employees, without jeopardizing the company as it would if it falls into the temptation to give in to pressure from salary adjustments beyond what is actually generated.