21 February, 2008Union says the situation of approximately 2,500 contract workers must be resolved. Their poor working conditions would improve substantially if the company employed them directly.
COLOMBIA: IMF affiliate UTRAMICOL reports that the SINTRACERROMATOSO union has unanimously voted for a strike at the Cerro Matoso company, which is owned by the multinational BHP BILLITON.
The union explained it has not been able to make progress in negotiations with Cerro Matoso, even though the company has had good financial results over the last five years.
Company income has increased. For example, there was a 63 per cent increase in operating income in the first half of 2007, compared to the second half of 2006. Moreover, the company has benefited from trends in the world nickel market, and the expected sustained high demand and high prices mean prospects are good, said the union.
The union added that "the costs of ferronickel production and processing in the financial year 2007 were only 18 per cent of operating income and administrative costs represented only six per cent of operating income, making a total of 24 per cent; moreover, these costs have been gradually falling since 2003."
"The list of demands presented to Cerro Matoso contains a claim for a 62 per cent pay rise, a percentage increase that is equivalent to 1.1 per cent of the company's operating income in 2007. So if the company accepts the demands as they stand, wages will represent 2.8 per cent of operating income," said the union.
SINTRACERROMATOSO gave assurances that, "the main focus of negotiations is not pay, despite the millions of profits earned by the multinational. The main focus is the situation of more than 2,500 contract workers employed on tasks that form part of the company's legally defined corporate purpose. The poor living and working conditions of these workers would substantially improve if they were employed directly by the company, and this would also benefit the whole population of Montelibano -- Córdoba."
The IMF Regional Office has sent a message of solidarity to colleagues at UTRAMICOL, in this new struggle to defend workers' rights and hopes for a quick solution that is satisfactory for the workers.