Supervisory staff at Codelco's Salvador division have dropped plans to begin an indefinite 

strike over pay and conditions after accepting the latest offer from management, the state-

owned copper miner said late Wednesday. 

The supervisors had initially rejected the company's proposed contract but accepted a ne

w offer after five extra days of mediated talks. 

The two-year contract, which comes into force from May 1, includes a signing bonus worth 

Chilean Peso 3 million ($4,500) to compensate for the lack of a pay increase. 

Salvador is Codelco's smallest division by production, producing 60,000 mt last year. 

Other benefits are maintained while a new bonus has been included if the company achiev

es cost targets. 

The  result  comes  just days after workers at the giant Collahuasi mine, owned by Anglo 

American  and  Glencore, agreed  to a new contract, six months before their current one 

expires. 

"I  welcome the decision by the supervisors union which confirmed that this agreement is 

coherent with the reality of the business," said Juan Carlos Avendano, general manager 

of Salvador.