Exclusive-Codelco workers warn against job cuts, do not rule out strike -union head

By Fabian Cambero

SANTIAGO (Reuters) - Workers for Chile's Codelco will not rule out a strike if the state-owned copper company enacts job cuts to counteract a slump in production, which has reached its lowest point in a quarter century, the head of the company's union association said.

In an interview with Reuters, Amador Pantoja, president of the Federation of Copper Workers (FTC) - which brings together the company's unions - said Codelco, the world's largest copper producer, should focus on getting structural projects, which have faced numerous delays, into production.

"We have said in every tone that today we have an extremely stressed crew," Pantoja said, adding that the number of workers has dropped from 19,000 in 2015 to 12,000. "We cannot allow staff adjustments, we can't afford anymore."

Pantoja said that the unions aren't ruling out any actions to pressure the company against any decisions that would reduce the company's workforce and to force it to hold up agreements.

"We have never ruled out anything because those are the tools we have to defend ourselves," he said.

"We understand that there must be adjustments, but if they want lower staffing, they may encounter surprises and workers are on alert."

Pantoja also complained that the number of contractors has ballooned to 60,000, with 23,000 involved in production, which he says is in violation of previous agreements.

"We are losing the commitments that we already had," Pantoja said, adding that the FTC will host a workshop in the first half of November to present their vision of the situation and solutions for the company.

One of the proposals includes returning maintenance tasks from contractors to employees, which Pantoja says is one of the main bottlenecks for current operations.

The union leader noted that the company's current woes are "cyclical" and that workers have worked with the company before to find solutions.

"At one point in the past we froze our salaries, worked with management to reduce costs and came out almost even between the cost of production and the price of copper," Pantoja said.

He stressed that unions will also oppose attempts to privatize or allow private capital to enter Codelco.

"Having our company 100% in the hands of the state is non-negotiable for us," Pantoja said.

(Report by Fabián Andrés Cambero; Editing by Alexander Villegas and Diane Craft)