Original article: Sindicato Chuquicamata en alerta por eventual reducción de dotación en Codelco: Exigieron revisar «enorme estructura» de tercerización privada en la empresa

Chuquicamata Union Raises Alarm Over Potential Workforce Reduction at Codelco: Calls for Reevaluation of Private Outsourcing Structure

The Chuquicamata Union has entered a state of alert regarding a possible reduction in the workforce at Codelco, a move they assert has been included in the review process led by the current management of the state-owned mining company under the direction of Bernardo Fontaine.

«As we celebrate our national holidays, it has come to light that the review process at Codelco plans to reduce the workforce by between 5% and 20%. We refuse to accept that, without a comprehensive, serious, and shared diagnosis, the solution to recovering Codelco lies in cutting its workforce,» stated representatives from the union.

They further emphasized, «Before discussing layoffs, there is a much more pressing question to address: Where are the actual major costs and inefficiencies within Codelco?»

«According to the information we have, employee salaries account for approximately 14% of costs, while third-party services make up nearly 46%. Therefore, before reducing the number of our own workers, we must thoroughly review the substantial privatization structure of the company: contracts, duplicated services, unjustified costs, and activities that could—and should—be performed with in-house capabilities,» explained the union.

What About Poor Investment Decisions?

A particular point raised by the union revolves around the investments and decisions made during the company’s administration.

In this regard, they affirmed, «We also do not accept that this discussion ignores the consequences of poor investment decisions. Codelco has acknowledged significant deviations and cost overruns in major projects such as Chuquicamata Underground and the El Teniente project portfolio.»

«If there is now a demand for accountability, efficiency, and productivity, it is also necessary to explain who made those decisions, what went wrong, what responsibilities were established, and what consequences arose for those who were in charge of those processes,» they stressed.

«The chairman of the board, Bernardo Fontaine, has talked about ‘getting our house in order’, recovering productivity, and generating greater value for Chile. We agree with this. However, if we are going to organize the house, let’s do it thoroughly. Let’s review the contracts, third-party services, investments, projects, the upper management, and determine accountability,» the workers added.

We will continue to provide updates.