KGHM has contingency plan if talks with Chile union fails
WARSAW Jan 27 (Reuters) - Polish copper producer KGHM , faced with a strike at its Chilean mine Sierra Gorda, said it had contingency plans to maintain low-level production if planned talks with labour representatives fail to resolve a dispute over pay and conditions.
"At noon we started negotiations with the trade unions. We take the strike into consideration. We have a 'plan B' to maintain production at a low level in case of a strike," Chief Executive Herbert Wirth told reporters.
Unionized workers at Sierra Gorda held contract negotiations on Tuesday with the company, after workers voted last week to go on strike.
Chilean law allows for a five-day negotiating period after a strike vote, mediated by a government agency. The talks are set to conclude this week unless the parties request an extension.
The 450-member union is asking for higher salaries as well as improved education, health, housing and transportation benefits. The mine has a total of some 1,100 workers. (Reporting by Adrian Krajewski; Writing by Agnieszka Barteczko; Editing by David Holmes)
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