The strike by employees at Arauco’s Valdivia pulp mill in Chile has ended after 37 days. As Arauco announced, the company and the employee representatives were able to agree on a new collective agreement on 10 January. The new contract is valid until November 2027.
Following the signing of the agreement, Arauco is set to restore normal operations at the Valdivia pulp mill as quickly as possible and is already in the process of gradually resuming production.
The Valdivia pulp mill in the Chilean region of Los Rios has an annual production capacity of 550,000 t. Since the conversion of the pulp mill, which was fully completed in 2020, Arauco Valdivia pulp mill has been producing mainly dissolving pulp.
The 310 employees at the Valdivia pulp mill went on strike on 5 December last year to underline their demands for better conditions in ongoing collective bargaining negotiations, primarily asking for a higher pay. According to media reports, both sides have always emphasised their willingness to compromise and engage in dialogue, but an agreement could only be reached after more than five weeks and thanks to the mediation of the Chilean Ministry of Labour.
