Shougang Group strike has ended after 3 weeks

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After three weeks of going on strike, workers of the Shougang Hierro Peru, a unit of China´s Shougang Group, returned to work Monday. The strike resulted in a slight increase in wage, but perhaps greater affected the company itself in that it caused a hault in iron ore production.

Union leader Julio Ortiz reports that workers were demanding a wage increase of 9 soles. The mining company originally planned on a maximum increase of 4 soles, however the labor ministry stepped in and mandated a raise of 4.7 soles per day (roughly equivalent to $1.65).

During the three weeks of labor strike, Shougang Hierro declared “force majeure,” a clause that removes liability from not fulfilling obligations, due to unforeseen motives. The company’s iron production in Peru, which was nearly 7 million tons in 2013, was momentarily at a standstill.

The is just the latest strike to occur for the mining company. In 2012, workers similarly had a 30-day strike, which forced the company to stop production and shipments.
Miners of the Chinese company had been demanding a higher wage.

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