08:38 AM EDT, 07/29/2024 (MT Newswires) -- A union at BHP's (BHP) Escondida mine in Chile is preparing to strike as it calls on its nearly 2,400 members to reject the company's final contract offer, Reuters reported Monday, citing the union president.

Patricio Tapia, president of the Escondido Labor Union No. 1, said workers will vote from Monday to Thursday, according to the report.

A strike could start immediately if the contract is rejected, but Chilean law allows either party to request for five days of government mediation, Reuters said.

Tapia was quoted as saying said the union represents nearly 99% of frontline operational workers at Escondida, the world's largest copper mine, which means that BHP would not be able to produce copper if a strike occurs.

Workers were seeking payments equal to 1% of shareholder dividends, which would be paid throughout a new three-year contract, Reuters said.

BHP reportedly told Reuters that it would increase its benefits and add new ones.

MT Newswires could not immediately reach the union for comment. The company did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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