US-based miner Albemarle has started official negotiations with its employees' union, postponing a broad walkout at its lithium operations in Chile.
Albemarle formally asked Antofagasta's regional labour watchdog to mediate discussions between the company and the union, which represents its Chilean lithium workers. The first meeting between all three parties is scheduled for 3pm local time today.
The union had almost unanimously approved a strike scheduled to begin on the morning of 2 September, unless Albemarle requested negotiations by midnight on 1 September, local time.
By initiating mediated talks, Albemarle now has five calendar days, or until 6 September, to reach an agreement with the union. If no deal is reached, the walkout will proceed and begin at 8am on 7 September.
It is still unclear how a strike would impact Albemarle's operations and lithium output.
The union said the dispute centres on Albemarle's refusal to treat the existing collective bargaining agreement as the baseline for negotiations, in addition to uncertainty over whether proposals made during talks will stand, and the extension of union-negotiated benefits to other workers.
"We will not accept the removal or loss of any benefits that the workers have already guaranteed, and we will seek improved conditions that reflect Albemarle's growth," the union said. Albemarle reported $480mn in profits during the second quarter, 20 times higher than the same period last year.
The company did not reply to Argus' request for comment by the time of publication.
