Freeport's workers to go on strike, again

Tuesday, June 5 2012 - 08:53 AM WIB

News are circulating that Indonesian workers at Freeport McMoRan Copper & Gold Inc's Grasberg mine in Papua have threatened to go on strike again this month following the dismissal of 3 union members and security problems.

"In the near future in June we will hold a demonstration in connection with security issues and the dismissal of 3 employees which we regard as not in accordance with procedure. This action will be firm or we will stop completely.? said Virgo Solossa, spokesman for Freeport Indonesia's union, as quoted by Reuters. Salossa said that three workers were dismissed after being taken to court for being involved in a fight.

He further said that workers are also concerned about the security situation following frequent shootings near the mining area.

Workers violences due to tensions related to the prior three month long workers strike over pay had caused about two weeks halt of production at Grasberg mine during February and March. These disruptions cut Freeport?s first-quarter copper output by 80 million pounds (36,287 metric tons) and 125,000 ounces of gold, hurting global supply and boosted copper prices.

Sinta Sirait, an executive vice president at Freeport Indonesia, stated that company management isn't aware of any strike plan this month, though acknowledging tensions between employees who took part in the strike and those who didn't.

"The dialog between the two parties is taking place to try and solve the problem," she said.

Jakarta based company spokesperson Ramdani Sirait said that the company is setting up a crisis management unit to deal with the labor dispute.(*)

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