Unionized workers at copper producer Sociedad Minera Cerro Verde SA (CVERDEC1.VL) are evaluating a request from the company to begin arbitration for a new collective agreement, a union official said.

Workers at Cerro Verde have been on strike since Sept. 29 to back demands for higher pay amid negotiations for a new collective agreement. The previous collective agreement expired Aug. 31.

"Since the previous agreement expired, [Cerro Verde] has been actively negotiating a new one taking into account the requests from the union and offering competitive and generous salaries and benefits," the company said Monday.

"Unfortunately, the negotiation process has not been successful as no deal has been reached that would allow for the signing of a new collective agreement," Cerro Verde added.

The company said that it remains willing to continue negotiations and hopes to sign a new agreement "as soon as possible."

Union leader Leoncio Amudio told Dow Jones Newswires Wednesday that workers may make a decision later in the day about whether the union will enter arbitration.

"We are taking a look, we are evaluating the context to see what is most advisable," Amudio said.

Cerro Verde is one of Peru's biggest copper producers. It produced 157 million pounds of copper in the third quarter of this year, down from 165 million pounds in the same period in 2010.

Freeport-McMoRan Copper & Gold Inc. (FCX) has a majority stake of Cerro Verde.

-By Ryan Dube, Dow Jones Newswires; 51-945 043 802; peru@dowjones.com

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