Identifier
Created
Classification
Origin
07BOGOTA689
2007-01-31 21:54:00
UNCLASSIFIED
Embassy Bogota
Cable title:
CERREJON COAL COMPANY SETTLES LABOR DISPUTE
how-toVZCZCXYZ0007 RR RUEHWEB DE RUEHBO #0689 0312154 ZNR UUUUU ZZH R 312154Z JAN 07 FM AMEMBASSY BOGOTA TO RUEHC/SECSTATE WASHDC 2369 INFO RHMFIUU/DEPT OF ENERGY WASHINGTON DC RUCPDOC/DEPT OF COMMERCE WASHDC RUEHC/DEPT OF LABOR WASHDC
UNCLAS BOGOTA 000689
SIPDIS
SIPDIS
E.O. 12958: N/A
TAGS: ENRG EMIN EINV ELAB CO
SUBJECT: CERREJON COAL COMPANY SETTLES LABOR DISPUTE
WITHOUT THE DRUMMOND DRAMA
REF: 06 BOGOTA 5395
UNCLAS BOGOTA 000689
SIPDIS
SIPDIS
E.O. 12958: N/A
TAGS: ENRG EMIN EINV ELAB CO
SUBJECT: CERREJON COAL COMPANY SETTLES LABOR DISPUTE
WITHOUT THE DRUMMOND DRAMA
REF: 06 BOGOTA 5395
1. (U) On January 29, Cerrejon Mines (owned by a consortium
of UK and Canadian companies) settled biannual labor talks,
averting a strike which would have affected delivery of
nearly 500,000 tons per month of coal to the U.S. The
workers' union at Cerrejon, SINTRAMINENEGETICA, was the same
union that struck at the Drummond mine for six weeks in 2006
(reftel). According to a senior Cerrejon executive, the
labor negotiations were "amiable" in spite of the union's
vote in early January to authorize a strike. The executive
added that Cerrejon viewed the strike vote as "posturing",
and that the company was never concerned over a potential
work stoppage. Labor union sources also reported that the
negotiations were positive and without the animosity that
they experienced with Drummond.
2. (U) Cerrejon negotiators were able to quickly resolve
labor/management issues, allowing more space for negotiators
to close on wage differences. Cerrejon workers will receive
a 7.7 percent wage increase during the first year of the two
year contract, and a 6.0 percent raise during the final year.
In comparison, Drummond workers received an 8 percent raise
the first year and 1.5 percent above inflation (inflation was
4.48 percent in 2006) the second year. Cerrejon is the second
largest Colombian coal exporter, delivering approximately 5.5
million tons of steam coal a year to the southeastern U.S..
Drummond is the leading exporter of steam coal to the U.S. at
14.1 million tons.
4. (SBU) Comment- Unlike Drummond, Cerrejon was able to avoid
a strike with SINTRAIENERGETICA by adequately dealing with
labor management issues such as termination without cause and
increased social benefit packages. It should be remembered,
however the Drummond strike occurred in the midst of
Colombia's national election campaign which seemed to
influence both labor and management's hard line. Drummond's
hard line in negotiations with the union, in spite of a six
week strike, likely set a baseline for wage concessions that
was more easily met by Cerrejon. End Comment.
WOOD
SIPDIS
SIPDIS
E.O. 12958: N/A
TAGS: ENRG EMIN EINV ELAB CO
SUBJECT: CERREJON COAL COMPANY SETTLES LABOR DISPUTE
WITHOUT THE DRUMMOND DRAMA
REF: 06 BOGOTA 5395
1. (U) On January 29, Cerrejon Mines (owned by a consortium
of UK and Canadian companies) settled biannual labor talks,
averting a strike which would have affected delivery of
nearly 500,000 tons per month of coal to the U.S. The
workers' union at Cerrejon, SINTRAMINENEGETICA, was the same
union that struck at the Drummond mine for six weeks in 2006
(reftel). According to a senior Cerrejon executive, the
labor negotiations were "amiable" in spite of the union's
vote in early January to authorize a strike. The executive
added that Cerrejon viewed the strike vote as "posturing",
and that the company was never concerned over a potential
work stoppage. Labor union sources also reported that the
negotiations were positive and without the animosity that
they experienced with Drummond.
2. (U) Cerrejon negotiators were able to quickly resolve
labor/management issues, allowing more space for negotiators
to close on wage differences. Cerrejon workers will receive
a 7.7 percent wage increase during the first year of the two
year contract, and a 6.0 percent raise during the final year.
In comparison, Drummond workers received an 8 percent raise
the first year and 1.5 percent above inflation (inflation was
4.48 percent in 2006) the second year. Cerrejon is the second
largest Colombian coal exporter, delivering approximately 5.5
million tons of steam coal a year to the southeastern U.S..
Drummond is the leading exporter of steam coal to the U.S. at
14.1 million tons.
4. (SBU) Comment- Unlike Drummond, Cerrejon was able to avoid
a strike with SINTRAIENERGETICA by adequately dealing with
labor management issues such as termination without cause and
increased social benefit packages. It should be remembered,
however the Drummond strike occurred in the midst of
Colombia's national election campaign which seemed to
influence both labor and management's hard line. Drummond's
hard line in negotiations with the union, in spite of a six
week strike, likely set a baseline for wage concessions that
was more easily met by Cerrejon. End Comment.
WOOD