Workers at Glencore's copper refinery in Australia are preparing to strike.
Workers at Glencore's Australian copper refinery have threatened to strike starting Friday after failing to reach an agreement on a pay dispute. The Australian Workers' Union (AWU) issued a statement on Wednesday, notifying Glencore that employees will stop work and strike if the company does not increase wages. The union stated that Glencore pays workers nearly 15% less than what other companies in nearby factories offer.
The refinery, located in Townsville, Queensland, produces up to 300,000 tons of refined copper annually and is one of the largest refineries in Australia. It processes third-party raw materials, including some from $BHP Group Ltd (BHP.US)$ 's Olympic Dam mine site.
Over the past decade, the rapid expansion of copper smelting and refining capacity in China has led to the closure of many high-cost facilities globally, including those in Australia. Glencore received AUD 600 million (approximately USD 429 million) in bailout funds from the Australian federal and state governments to maintain operations at the Townsville refinery and its associated smelter in Mount Isa.
The Australian Workers' Union stated that Glencore and the union will hold a final meeting on Thursday. Stacey Schinnerl, Secretary of the Queensland branch of the Australian Workers' Union, said in the statement: 'Despite Glencore’s tendency to divest assets and lay off workers at the first sign of economic pressure, our members have consistently worked hard to ensure this refinery has a future.'
