PTFI reaches agreement with workers union

PT Freeport Indonesia (PTFI), a subsidiary of US giant Freeport McMoRan Copper and Gold Inc, has finally reached agreement with its workers union over wage hike and other major items to be included in the new labor agreement.

The company, which operates a giant gold and copper mine in Papua, said in a statement Wednesday that both parties have agreed in principle on the substantive terms to be included in the 18th Collective Labor Agreement (CLA) for the period of 2013-2015 including a base pay increase for the workers.

Enhancements in the pension plan and other benefits were also agreed upon. The negotiating teams are now in talks to settle the remaining details and expect to formalize the CLA before the end of October, the company added.

?We are very encouraged by this development which saw the management and union agreeing on what?s best for the worker?s welfare and PTFI?s operations,? said PTFI President Director, Rozik B. Soetjipto.

The 18th Collective Labor Agreement will be retroactive to October 1st, 2013 as agreed to by both parties.

PTFI had been engaged in protracted negotiation talks with the workers union over wage hike. As reported by this portal, the workers demanded a 40 percent hike, while the company only agreed on a 15 percent hike. Both parties failed to reach agreement by the September deadline, extending the negotiation into October.

Editing by Reiner Simanjuntak