Spence Union Files Lawsuit Against BHP-Controlled Companies Over Multirut

This lawsuit sets a precedent in the Chilean mining industry and could have significant repercussions on union organization and labor relations within the sector.

The Spence Mining Company Workers’ Union has filed a lawsuit over Multirut against several companies controlled by BHP, arguing that they operate under a common labor direction. This legal action is based on Article 3° of the Chilean Labor Code, which states that "two or more companies shall be considered a single employer for labor and social security purposes when they have a common labor direction and meet conditions such as the similarity or necessary complementarity of the products or services they produce or provide, or the existence of a common controller among them."

Defendants and union’s arguments

The lawsuit was filed against Minera Spence S.A., Compañía Minera Cerro Colorado, Minera Escondida Limitada, and the Remote Operation Centers BHP Chile Inc. and Operation Services Chile Spa. According to the union, these companies share a common controller, the multinational BHP, of Anglo-Australian origin, and engage in similar and/or complementary economic activities related to copper extraction and processing.

"This lawsuit aims to establish that the defendant companies should be considered a single employer for labor and social security purposes, protecting workers' rights from potential adverse effects arising from the Multirut structure," the Spence Union explained.

The legal action is based on the following factors:

• Existence of a common controller.
• Similarity and complementarity in production and services provided.
• Operational linkage between the defendant companies.
• Common labor direction.

Impact on collective bargaining and labor rights

The union argues that this action was thoroughly discussed during the 2021 and 2024 collective bargaining processes, as well as in the context of restructurings initiated by BHP. "Dividing companies under different tax identification numbers has weakened union dynamics, reducing collective bargaining power and posing a threat to employment and working conditions," they stated.

While the union acknowledges the need for modernization in production processes, it emphasizes that these changes must respect collective rights and union organization. "We do not oppose modernization, but there must be a balance between business decisions and workers' rights," they affirmed.

Decision in the hands of the judiciary

Finally, the Spence Union board stressed that this lawsuit seeks to prevent union fragmentation and the loss of workers’ bargaining power. Now, it will be up to the Judiciary to determine whether the defendant companies meet the criteria established in labor legislation to be considered a single employer.

This lawsuit sets a precedent in the Chilean mining industry and could have significant repercussions on union organization and labor relations within the sector.