UPDATE 2-Colombia's Cerrejon, coal workers see progress

Fri Feb 4, 2011 7:24pm EST

Related Topics

 * No deal reached after mediation, but progress made
 * Union expected to decide on Saturday on strike
 * Cerrejon, workers have been in talks since early Dec
 (Updates that no deal but progress made, adds details,
comment, byline)
 By Monica Garcia
 BOGOTA, Feb 4 (Reuters) - Colombian coal workers and the
nation's largest exporter, Cerrejon, failed to reach a deal on
Friday but made progress in pay talks after the government
scrambled to avoid a looming strike, officials said.
 Cerrejon produces on average 85,000 tonnes a day of
high-quality thermal coal, and any prolonged stoppage at the
mine would hurt output at a time when global supplies are tight
due to issues in almost all major thermal producers.
 Sintracarbon union President Igor Diaz said that the
syndicate would present the company's proposals to workers on
Saturday. "It's the workers who will decide what will happen
next," he told reporters.
 "There were advances in some areas," he said, adding that
the company had increased the salary increment to 6.5 percent
for the first year from 6.3 percent previously.
 The union has a midnight Saturday/Sunday deadline to decide
whether to walkout, accept the deal or workers would have to
vote again on a strike, according to Colombian law.
 "We've made great progress ... now it's in the hands of the
union," Cerrejon President Leon Teicher told reporters. "You
have to let things take their course."
 Graphic on Cerrejon's exports:
 Factbox on Cerrejon: [ID:nN05192802]
 Top coal stories worldwide by region: [ID:nLDE70N0XE] 
 Cerrejon and workers have been in talks since Dec. 9. If
workers strike, it will be the first walkout in twenty years,
according to the company.
 Colombian Vice President Angelino Garzon held an hours-long
meeting on Friday with Cerrejon executives and union leaders to
try to hash out a compensation deal.
 "I'm optimistic that due to the willingness of the company
and the union, we're very close to a deal," Garzon said.
 Cerrejon -- unlike privately owned Drummond and Glencore,
Colombia's other top coal producers -- has listed partners, BHP
Billiton (BLT.L), Anglo American (AAL.L) and Xstrata XTA.L,
to keep happy as well as its customers.
 Adding to pressure to reach a deal with workers, its
partners have had lower output from mines in Australia due to
flooding and would not want to lose any more production in such
a tightly balanced market set to go higher.
 Global coal markets have been vulnerable to supply
disruptions in many important exporting countries, such as
Australia, and that has boosted prices.
  (Additional reporting and writing by by Jack Kimball; Editing
by Gary Hill)