Strike ends at Drummond's La Loma coal mine

26.06.06

www.bnamericas.com

Negotiators for US coal miner Drummond and Colombia’s national mining and energy union Sintramienergética have reached an agreement to end the 32-day strike at the company’s La Loma mine.

“Last night [Jun 22] we broke the seals on the equipment at the plant, which were endorsed by the labor ministry and the attorney, after signing the agreement,” union member Orlando Acosta told BNamericas.

They reached an agreement thanks to mediation by the social protection ministry, Drummond said in a statement.

The deal will last for two years and includes an 8% pay raise in the first year and an additional 1.5% on top of the consumer price index in the second year, Drummond said.

The agreement also includes social loans and other financial benefits. “The terms as they stand are acceptable to the workers,” said Acosta.

The strike has affected operations at the company since May 22, when talks collapsed.

As a result of the strike, coal exports were down by approximately 75,000t/d or 2.4Mt over the 32 days of the stoppage, according to Drummond’s figures.

Acosta said that employees will continue working “to reach output goals for the year.”

“Drummond’s production goal for 2006 is 26Mt and the conditions are such that this can be accomplished,” he said.

The company’s figures also indicate that the stoppage generated daily losses of US$2.4mn for the country, 5.4bn pesos (about US$2.1mn) for contractors and distribution companies, 900mn pesos in royalties and 731mn pesos in salaries and provisions.

Drummond has more than 2,900 direct and 5,000 indirect employees at the La Loma mine and associated port.

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