There are some bad news for miners. Mining is one the industries which has most suffered the economic slowdown, as jobs have been lost, hiring has diminished and wages have either freeze or are lower than in 2013.

According to data provided by Sonami, last year the mining industry haired an average of 250.000 persons on a monthly basis, while during the first 5 months of 2014, the average occupational level reached 238.000. In other words, there was a drop of 4, 8% as regards employment.

Sonami points out that there are greater concerns as regards the comparison of the numbers of the last three months –April to June 2014- to the employment situation of those same months on 2013, as the mining industry has lost around 21880 jobs. “This means an occupational drop of 8, 5%, turning the industry into the most affected by employment drops during the period indicated.”

Felipe Lagos, Director of Adecco Professional, states that the mining industry is presenting a fall in the hiring levels and many companies have dismissed several employees in order to reduce costs. “Currently, the market labour is moving at a lower pace than in 2012”.

Lagos adds that “mining is one of the industries with higher levels of standstill, as it directly depends on the approval of projects currently on hold, of the resolution of new regulations –particularly environmental regulations-, and of the progress of the price of copper. Consequently, many companies are reducing their expenses and making their costs more efficient”.

Ricardo Garib, sponsor director of the Labour Committee of Aprimin, says that, up to this date, there are three or four large projects ending construction phase and initiating the start up-phase. “Nevertheless, there are no large projects starting the construction phase.”

Hiring and remunerations

The standstill of projects, the lower economic activity and the tax reform are the main causes of the current situation of the mining labour market. Lagos states that such situation has affected investments in mining and, therefore, hiring staff in the industry. “Furthermore, the price of copper has been a determinant factor that has caused less movement in the mining labour market.”

The area within mining companies that has suffered employment decrease the most affected is Operations, which has been deeply affected due to the slowdown of the industry.

“There has been a fall in hiring and many search and selection processes have been paused. As regards remunerations, wages had to be regularized, as the present scenery has not favoured offering high salaries. In general terms, those professionals who are currently searching a new job, aim to gain a labour challenge rather than to increase their earnings.”

Garib observes persisting pressure and expectations of high remuneration increases among mining industry workers. This may lead to an increase of labour conflict levels.

Nonetheless, Lagos expects a small rise in the labour market during the second semester of 2014 and first three months of 2015. However, he points out that such situation will depend on the execution of several projects which are either paused or under research, as well as on the progress and resolution of reforms that are being discussed nowadays.

Source: El Mercurio