"Landep News"
The management of PT Freeport Indonesia and PT Freeport Workers Union (SPSI) has agreed to end the strike. It was reported earlier that more than 8,000 workers have been protesting outside the company’s headquarters and a 300-strong group on Wednesday blocked the main route to the huge gold and copper mine north of the coastal city of Timika.
The strike that lasted for eight days from Monday (04/11/2011) resulting in suspension of PT Freeport Indonesia operation. The workers are demanding higher wages as their current income was the lowest among McMoRan employees in other countries while PT Freeport Indonesia contribute more than 50% of total McMoran income.
Grassberg Mine operated by Freeport
PT Freeport Indonesia had also suspended workers suspected to have been involved in mobilizing employee for the strike.
A letter of agreement between the management and worker union was signed by the Director & CAO Executive Vice President of PT Freeport, Sinta Sirait and Chairman of worker union at Mimika House of Representative in Sudiro Building Mimika Monday (11/7/2011) night at about 21:30 East Indonesia Time.
Other parties who signed the agreement including the Mimika House of Representative Chairman Tryphaena Tinal, Head of Mimika Social, Manpower and Transmigration department Mameyao Dionysus, Mimika Secretariat Assistant III Nur Ananta, and from the Mimika Police Chief, Mimika Dandim 1710 (the army), Timika air base commander and Timika sea port commander.
The letter listed six points of agreement between the management of PT Freeport with the worker union concerning settlement of industrial disputes through mediation facilitated by Mimika House of Representative. Both parties accept the advice given by the Mimika Department of Social Welfare, Manpower and Transmigration in its letter No. 565 dated July 7, 2011.
Management of PT Freeport Indonesia promised that it would not take any action or give any sanctions against any employee who mobilized the strike as well as to employees who are on strike. Management also said it will pay all salaries of employees during the strike according to regular business hours. The worker union in respond will revoke the notice of extension of the strike dated July 7, 2011.
Effective as of Tuesday (12/07/2011), all employees and worker union will return to the workplace. No later than the next 10 days, the company management and worker union will immediately negotiate Collective Labor Agreement (CLA) XVII which shall be valid for two years from the year 2012-2013.
This mutual agreement between the management and worker union was achieves after undergoing a mediation process by the Mimika House of Representative in a marathon meeting that lasted from Friday until Monday night.
These mediation meeting was also attended by representatives of the Papua Province Representatives Council, members of the Papuan People’s Assembly (MRP), local Government Director of Investigation and the Criminal Police of Papua.
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