BOGOTA (Reuters) - The biggest union at the Cerrejon coal mine in Colombia pulled back from launching a previously approved strike over the weekend and withdrew its demands regarding pay raises and other benefits.
The decision by union Sintracarbon extends previously agreed benefits with the company until June 30 this year. An initial 20 days of new negotiations will begin in May.
The union had until midnight on Saturday to declare the start of a strike at the northern mine, which members had voted to support on March 16.
If there is no agreement at the new talks, the union must once again call on members to vote between strike action or arbitration.
Sintracarbon had accused Cerrejon of looking to cut costs by freezing, reducing and eliminating employee benefits.
During the now-suspended negotiations, the union demanded a salary increase of 7.8%, as well as health, education and accommodation benefits.
The company, which offered a pay rise of 3.8% in tandem with 2019 inflation, declined to comment on Sintracarbon’s decision.
The most recent strike at Cerrejon, which is owned equally by Anglo American, Glencore and BHP Group, lasted 32 days in 2013.
Last year, coal prices fell to an average of $51.40 per tonne, from $82.50 per tonne in the previous year, according to the energy ministry.
Coal is the second largest generator of foreign currency for the Andean country after oil.
Cerrejon’s operations, located in La Guajira province, consist of an open-pit mine, a railway line and a seaport in the Caribbean Sea.
The company, which has reduced its operations to control the spread of coronavirus, exported 26.3 million tonnes of coal in 2019 and has 5,896 workers, of which 4,600 are union members.
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