LIMA Oct 4 Workers of Shougang Hierro Peru, a
unit of China's Shougang Group, will go on strike Oct. 9 to
demand better wages and benefits, a union leader said on
Workers at the iron ore mine in the southern region of Ica
are asking for a raise of 10 soles per day (US$3.85) on top of
basic wages, but the company has offered an increase of 2 soles
($0.77) per day, union leader Julio Ortiz said.
Ortiz said 1,100 workers would stop working for an
indefinite period of time.
The union had originally planned the strike for the end of
September but postponed it because authorities had not issued
approval. Miluska Monzon with the labour ministry said the union
now has permission to go on strike on Oct. 9.
Shougang general manager Raul Vera said he did not
know the union had set a date for a strike and declined to
Shougang's net profits in 2011 grew 50 percent to $1.2
billion over 2010.
Last year, Shougang workers in Peru stopped working for
almost a month to secure higher wages and better working
conditions. At that time the company declared force majeure,
which exempted it from contractual obligations on delivery of
Shougang is the only iron ore producer in Peru, where
minerals account for 60 percent of export earnings. According to
the mining ministry, the company produced 7.01 million tons of
iron last year.