Update-Freeport workers agree to end strike, production expected to get back to normal rate

Native workers of Papuan copper and gold miner PT. Freeport Indonesia (PTFI) on Saturday had agreed to call off striking after they had reached agreement the management of the mining giant.

“Normal production rate is expected to be achieved soon,” PTFI spokesman Mindo Pangaribuan said.

According to the company, PTFI and workers’ association called Tongoi Papua (TP) had have successfully concluded their discussions, in which TP agreed to channel their aspirations through the authorized workers’ union, SPSI, during the ongoing Collective Labor Agreement (CLA) negotiation, including an agreed framework for minimum wages.

“We have also agreed that a feasibility study for the creation of a Papuan Affairs Department will be conducted,” other PTFI spokesman Ramdani Sirait said in an e-mailed statement, adding that PTFI will also consistently implement industrial relations guidelines in accordance to the prevailing laws and policies.

This decision was reached in exchange for the cessation of the strike and the agreement that the employees will return to work immediately, which will allow Grasberg to return to normal operations.

The three day strike by the workers, who demanded to raise minimum salary from Rp.2 million (US$210) per month to between Rp3.1-3.6 million per month, has sent production from underground mine and Grasberg open-pit mine plummeted to 60 percent and 20 percent, respectively. The strike also sent copper price to soar in the international market.

"We reiterate that PTFI remains committed to continually advancing its native Papuan employees, including increasing the number of native Papuan employees occupying senior positions within the organization. To this end, the company is applying two Manpower Preparation programs for native Papuans, namely the New Graduate Development Program and the Apprenticeship Program at the Nemangkawi Mining Institute. These two programs are focused on the selection and development of native Papuan manpower with the potential and skills to succeed in professional work,” Ramdani said.

“In the span of 10 years, the native Papuan work force in PTFI has increased significantly. In 1996, when PTFI made a major commitment to increase its Papuan employment, native Papuan employees in PT-FI numbered around just 800, and by January 2007, this number had climbed to over 3,000, including apprentice program participants at the Nemangkawi Mining Institute. This meets the commitment PTFI made in 1996, but these efforts will continue unabated, because that commitment has been basic company policy since 1996.”

PTFI is a subsidiary of mining giant Freeport McMoRan Copper& Gold Inc. (godang)