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Rio Tinto (NYSE:RIO) is in negotiations with workers at its Oyu Tolgoi copper mine in Mongolia to prevent a strike, following an earlier strike in May over a sharp drop in wages, Reuters reported Tuesday.
Changes in Mongolia’s Labor Law prompted Rio Tinto (RIO) to recalculate employee allowances, resulting in wages that have dropped by as much as 80%, according to non-governmental organization OT Watch.
“The key demand of workers is to bring wages to similar levels paid for the same type of work performed in other Rio Tinto mines,” OT Watch told Reuters, adding that workers were being paid a “miserable $1,596 per month for work far from home.”
During the previous strike, according to the workers all open pit and underground mining was stopped, which may have led to some structural issues underground, OT Watch said.
Rio Tinto (RIO) said the May strike did not affect mine operations and there was no material impact to mine production, adding that the action was limited to a “small group of employees.”