Freeport, workers begin negotiations
Tuesday, May 14 2013 - 02:25 AM WIB
The company said in a statement that it was joining with the Indonesian Chemical, Energy and Mine Workers Union to open the 18th Collective Labor Agreement negotiations, which cover the period from now until 2015, The Jakarta Globe reported.
Freeport, which operates a massive copper and gold mine at the Grasberg site in Papua, added that it would negotiate ?in accordance to Indonesia?s manpower laws.?
According to the statement, finding a mutual ground on the rules of engagement and on the procedures of negotiations will be the first agenda item. Only after procedural agreement is achieved will both parties proceed to negotiate ?the substantive aspects of the agreement,? the company said.
?We have been working in collaboration with members of the union through LKS Bipartite [Bipartite Cooperation Body] in which many issues have been addressed to mutual agreement,? Rozik Soetjipto, president director of Freeport Indonesia, said in a statement on Monday.
?Based on our earlier meetings, we fully expect constructive and productive negotiations with the union.?
Meanwhile, Tri Puspital, the spokesman of the Freeport workers, said that the union would demand an increase in basic wage of at least 40 percent for two years during the negotiations. She acknowledged that the proposed 40 percent increase was higher than the average increase of 11 percent a year in national level. But with the high inflation and high cost of living in Papua, the proposed increase of 40 percent in two years was still low, she said as reported by Kontan daily.
Freeport Indonesia has faced major disruptions in the past due to labor issues.
Earlier this month, several workers hired by Freeport contractors went on strike for several days.
In 2011, thousands of Freeport workers conducted a prolonged strike after failing to get a better deal with the management. (*)