VZCZCXYZ0026
PP RUEHWEB

DE RUEHBO #5712 1771329
ZNR UUUUU ZZH
P 261329Z JUN 06
FM AMEMBASSY BOGOTA
TO RUEHC/SECSTATE WASHDC PRIORITY 6365
INFO RUEHCV/AMEMBASSY CARACAS 7876
RUEHLP/AMEMBASSY LA PAZ JUN LIMA 3948
RUEHQT/AMEMBASSY QUITO 4596
RUEHGL/AMCONSUL GUAYAQUIL 3596

UNCLAS BOGOTA 005712 

SIPDIS 

SIPDIS 

E.O. 12958: N/A 
TAGS: ELAB EMIN EINV ENRG CO
SUBJECT: DRUMMOND STRIKE ENDS 

REF: A. BOGOTA 5524 

¶B. BOGOTA 5486 
     ¶C. BOGOTA 5395 
     ¶D. BOGOTA 5384 

¶1.  On June 22, the Drummond company and the union 
representing its workers, SINTRAMINENERGETICA, signed a new 
labor contract, ending a 32 day strike.  Both Mike Tracy, 
Drummond Director for Mining Operations, and union 
representative Francisco Ramirez, separately told Emboffs
they were "very happy" with the agreement.  The settlement 
includes an 8 percent salary increase with a 1.5 percent 
increase over inflation the following year, an indemnity 
payment increase of 31 percent, new disciplinary procedures, 
and industrial safety guarantees.  The contract is valid for 
two years, beginning June 1, 2006, and its salary terms will 
also be applied retroactively from April 1, 2006.  Workers 
will return to work at noon on June 23. 

¶2.  Both parties are satisfied with the issue of labor 
stability, which had been a primary point of contention 
during negotiations.  Union representative Ramirez told 
Laboff the union had won more job security through the new 
disciplinary procedures, increased severance pay, and a 
commitment by the company not to fire workers for strike or 
other union related activities.  Drummond Director Tracy 
explained to Econoff the company had conceded ground on 
indemnity payments and other financial points, but was 
relieved that the company had avoided committing to a "just 
cause clause" for worker dismissals. 

¶3.  The strike has caused estimated lost revenue of 130 
million USD to the company. 
WOOD 

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