Strike halts world's largest copper producer

SANTIAGO — Workers at the world's largest copper producer, Chile's Codelco, went on strike Monday for 24 hours over modernization plans they fear amount to privatization.The company's first strike in 18 years halted work at Chuquicamata -- the world's largest open-pit mine -- El Teniente and Andina. The state-owned operations produce more than 10 percent of the world's copper.The nationwide strike affected all company units, said Raimundo Espinoza, president of the Federation of Copper Workers (FTC), which represents some 15,000 full-time Codelco workers.Espinoza said the union had "concrete information" of plans for a "covert privatization" of the company. Monday's action is a "warning strike," he said.The workers oppose modernization plans being implemented by company officials appointed by President Sebastian Pinera, the first conservative to take office in Chile in 20 years.Codelco has 20,000 full-time employees, 75 percent of whom are unionized. The company also has some 20,000 subcontracted workers, all of whom have joined the strike.Government reform plans that are already being implemented include shedding some 2,600 full-time Codelco jobs.Pay for Codelco workers is around $4,000 a month, four times the average Chilean salary of around $1,000. Workers say the high pay is necessary because mining is dangerous and results in a high level of work-related illnesses.Analysts say that Codelco workers have accumulated benefits over the years that are now a heavy burden for the company.Codelco managers say the modernization plans are necessary to compete with more nimble private operations, but workers believe they are designed to saddle the company with debt, then rely on private investors to bail them out.Mining Minister Laurence Goldborne has denied plans to privatize the lucrative company. "We are not moving in that direction," he said.The strike halts production of about 4,900 tons of copper and will generate losses of more than $40 million, according to Codelco figures.Chile is the world's top coppe

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