Workers at the world's largest copper mine have voted to go on strike, overwhelmingly rejecting owner BHP Group's final pay offer, in a move that will fuel concerns about the metal's global supply.
In voting this week, 99.5% of 2,175 members of the main union at Escondida choose to pressure BHP into offering better terms in a new three-year contract, the union said in a statement late Saturday. Labor rules in Chile give either side the option to utilize at least five days of government mediation before a strike can begin. BHP confirmed it will request mediation in a bid to reach a deal.
The potential for disruption at the 1.2 million metric ton mine last year fluctuates in the copper market amid strong demand and high prices. Futures are up about 5% in the last two weeks. The same union that pressed Escondida for a larger share of the copper shook the market with a 44-day halt in 2017.