Improving productive bonuses is not enough

Regarding the several-day strike that affects the Candelaria mining company, and the suspension of its operations, it is worth reflecting on what is the symptom that can be seen in this conflict, and that it is important to keep in mind as a warning light in the other companies.  This is that the productivity of mining has been declining, and to face its effects, including conflicts with workers, it is not enough to pay more, as some recommend, or focus on the productive improvement bonus.

The Candelaria mining conflict, -which produced 111 thousand tons in 2019-, should be approached from the Human Side of Productivity, as indicated by the OECD, so that owners, executives and workers push towards the same side, embracing the objectives of the company.

Clearly, directors, executives and workers are not aligned, because they fail to work together, involving all levels in the company's strategy, but go through separate silos, each following their own interests.

A change oriented towards this view of the human side is required, because it is not a variable that is being valued in the mining industry in Chile, since it is one of the most important productive sectors in the country.

They all seem to have failed in some way. The State, which makes public policies, the company with its internal logic and the workers who are on strike.

Francisco Ortuzar

Orca Business Consulting Partner