Vale SA will not pay the bonuses demanded by its striking workers at the Moatize coal mine in Mozambique, Reuters reported Dec. 18, citing the company.
The mining major called the labor action "illegal" and advised employees to return to work and resolve such issues within the competent forums.
The workers downed tools Dec. 15 demanding two bonuses, including a 14th salary and a retention bonus.
Vale said in a statement there was "no provision for any payment" to meet the demands of the striking employees.
The company increased the workers' salaries by 15.6% this year and by up to 9% in 2016. Vale employs 2,500 direct workers and about 7,000 indirect employees in Mozambique.