GLENCORE SETTLES BUT DRUMMOND STILL ON STRIKE

C O N F I D E N T I A L BOGOTA 005175

SIPDIS

SIPDIS

E.O. 12958: DECL: 06/08/2016
TAGS: EMIN ENRG EINV CO
SUBJECT: GLENCORE SETTLES BUT DRUMMOND STILL ON STRIKE

REF: A. BOGOTA 4537

B. BOGOTA 4686

C. BOGOTA 5067

Classified By: DCM MILTON DRUCKER FOR REASONS 1 (B) AND (D)


1. (C) Production has resumed at the La Jagua Ibirico mine
after striking workers and the Glencore Corp. reached
agreement on a new labor contract late on June 7. Ever
Causado, Secretary General of the coal miners' union involved
in the strike, told Laboff the settlement included an 8
percent wage hike, a USD 40,000 social investment program,
and a "just cause" procedure for dismissing workers. The
settlement means 5600 tons of U.S.-destined coal per day will
return to production.


2. (C) In contrast, Beatriz Duque, Director of Mines at the
Ministry of Energy and Mines, told Econoff the Ministry was
worried about the Drummond strike. She stated both sides
were "polarized". The union appeared to be "radical and
political" in its attitude toward Drummond, while the head of
Drummond Colombia told the Ministry he will not negotiate
under the kind of pressure he is receiving from the union.
As a result of the apparent impasse, Duque said the Ministry
of Social Protection plans to intercede and mediate the
negotiations. She stated to Econoff that both sides need to
get "serious" about negotiations and get the mine back in
production.
WOOD