Jakarta says resolution to Freeport industrial dispute in Papua is nearing
Indonesia’s government says a compromise has nearly been reached
between a striking workers union and the management of the Papua
operations of US gold and copper mining giant Freeport McMoran.
The strike by thousands of workers at Freeport’s giant Grasberg mine in Timika has entered a third month.
Workers are demanding better wages and improved working conditions
however collective bargaining has failed to break the industrial action.
The labor strike and the violence have prompted Freeport to declare force majeure in its Papua operation.
The company’s current production is 5 percent of its normal output.
Under normal conditions, Freeport recorded US$8 million in revenue per
day.
However, Indonesia’s Energy and Mineral Resources Minister Jero Wacik
says that the union’s salary demand had come down to US$4 per hour from
the initial demand of $35 per hour.
Freeport Indonesia’s management recently agreed to a 28 percent salary increase to $3.09 per hour.
The Minister says they are close to a settlement.
Source: RNZI
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