Freeport, labor uniton reach ?new era? accord

After several days of meetings in Jakarta, Union officers and management of PT Freeport Indonesia have entered into a ?New Era? agreement that both parties say will improve labor relations. Union leaders expressed support of the company?s operations and pledged to work with the management in order to achieve the principles of the New Era agreement.

?The key to this landmark agreement is the formation of an arbitration panel that will resolve any differences between the union and management,? Freeport said in a statement on Monday.

The three- person arbitration panel will consists of representatives from the union and Freeport along with an independent representative. Both parties expect the arbitration panel to resolve all future disputes fairly. It was agreed by Management and the Union that the decisions of the arbitration panel will be final and binding.

Freeport management and Union leaders praised the New Era agreement as the cornerstone to providing all workers a safe and productive environment as well as a process that will eliminate the need for work stoppages (strikes) in order to resolve differences.

The relation between Freeport and the firm?s SPSI labor union was strained recently following a string of incident at the firm?s mines.

Sudiro, head of the firm?s SPSI workers, was quoted by Kontan daily last month as saying that the workers had been disappointed as there has been no one held responsible for mining accidents at the company last year and this year, which have killed some 32 workers.

The labor union planned a strike to in their protest, but dropped the plan after a negotiation with the firm?s management.

Editing by Johannes Simbolon