Peru Shougang workers say planned strike underway

Mon Jul 13, 2009 11:24am EDT
 
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LIMA, July 13 (Reuters) - Workers at Shougang Hierro Peru (SHP.LM) started a labor strike for higher wages as planned on Monday, a union leader said.

Shougang Hierro Peru, a unit of the Chinese Shougang Group, churned out some 5.2 million tonnes of iron ore last year and is Peru's only iron producer.

"Shougang has the capacity to raise our salaries, just with 4 percent of its profits," union leader Julio Ortiz told Reuters.

Tensions in the sector have risen as prices for most of the country's metals exports have fallen because of the global economic downturn. The national labor federation says nearly 10,000 mine workers have lost their jobs since November.

Peru is the world's top producer of silver, No. 2 in copper and zinc, and ranks sixth in gold. (Reporting by Teresa Cespedes; Editing by John Picinich)

 

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