News / Asia

Freeport Strike Settlement Could Set Precedent

An activist shouts a slogan during a solidarity rally for workers of U.S. mining giant Freeport-McMoran outside the company's Indonesian headquarters in Jakarta, Indonesia, October 11, 2011 (file photo).
An activist shouts a slogan during a solidarity rally for workers of U.S. mining giant Freeport-McMoran outside the company's Indonesian headquarters in Jakarta, Indonesia, October 11, 2011 (file photo).
Brian Padden

Workers at the Freeport mine in Indonesia settled a three-month strike Wednesday that disrupted output at the world's second-largest copper mine. The Papuan workers, who were the lowest paid workers of any Freeport operation in the world, will get a significant pay raise, but less then they initially demanded.

Union workers at the Freeport McMoRan Copper & Gold company accepted a 37 percent pay raise, over two years, to end Indonesia's longest-running industrial dispute. The deal is to be officially approved on Saturday.  Under the final settlement the wages will increase to around $7.50 an hour.

Professor Kurtubi, an economist at the University of Indonesia who specializes in mineral resource economics, says the agreement is good for the workers, good for the company and good for the government.

"This is a good, good solution, a win, win solution. Instead of maintaining the dispute for never ending, it is good to reach an agreement," said Kurtubi.

He says the workers will get more pay. Freeport will still make a healthy profit.  And, with the labor issue resolved he says the government will now focus on renegotiating the percentage that Freeport pays in taxes and royalties, from one percent to three percent or more.

The settlement was expected be approved on Tuesday, but was delayed by last-minute negotiations to ensure workers would not be penalized for participating in the strike.

During the strike, the company said it was losing two million pounds of copper and 3,000 ounces of gold in daily production.  Despite the mine's reduced output during the labor unrest, copper prices fell on worries about weak global demand. There is concern that resuming full mining operations could further bring down prices.

During the strike, operations were further disrupted by attacks on pipelines and blockades by workers that cut off some food and fuel supplies. Workers will have to repair the damages before resuming full production.

The strike has been the highest profile work stoppage in Indonesia in recent years. Professor Kurtubi says other mining companies will likely have to match Freeport wages to prevent their workers from going on strike.

"The level of the salaries that they pay to the workers should not [be] so much different than the pay that workers receive in Freeport," said Kurtubi.

Freeport Indonesia employs 23,000 people its mining operations. Many are Christian and reportedly pushed for a settlement before Christmas, so that they could afford to celebrate the holiday.

You May Like

Video Protests Continue in Ferguson, Spread to Other US Cities

Missouri officials say deployment of more than 2,000 National Guard soldiers helps curb second night of rampant arson and looting in Midwestern town More

Video Ebola, Crackdown on Illegals Hit Business in Guangzhou

Chinese city has largest community of Africans in Asia More

Video Legendary Lebanese Actress, Singer Sabah Dies at 87

Music and film diva, affectionately called 'Sabbouha' by millions of her fans, performed at Carnegie Hall in New York, Royal Albert Hall in London, Olympia in Paris, Sydney Opera House in Sydney More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Aung San Suu Kyi: Myanmar Opposition to Keep Pushing for Constitutional Changei
X
November 24, 2014 10:09 PM
Myanmar opposition leader Aung San Suu Kyi says she and her supporters will continue pushing to amend a constitutional clause that bars her from running for president next year. VOA's Than Lwin Htun reports from the capital Naypyitaw in this report narrated by Colin Lovett.
Video

Video Aung San Suu Kyi: Myanmar Opposition to Keep Pushing for Constitutional Change

Myanmar opposition leader Aung San Suu Kyi says she and her supporters will continue pushing to amend a constitutional clause that bars her from running for president next year. VOA's Than Lwin Htun reports from the capital Naypyitaw in this report narrated by Colin Lovett.
Video

Video Mali Attempts to Shut Down Ebola Transmission Chain

Senegal and Nigeria were able to stop small Ebola outbreaks by closely monitoring those who had contact with the sick person and quickly isolating anyone with symptoms. Mali is now scrambling to do the same. VOA’s Anne Look reports from Mali on what the country is doing to shut down the chain of transmission.
Video

Video Ukraine Marks Anniversary of Deadly 1930s Famine

During a commemoration for millions who died of starvation in Ukraine in the early 1930s, President Petro Poroshenko lashed out at Soviet-era totalitarianism for causing the deaths and accused today’s Russian-backed rebels in the east of using similar tactics. VOA’s Daniel Shearf reports from Kyiv.
Video

Video Hong Kong Protests at a Crossroads

New public opinion polls in Hong Kong indicate declining support for pro-democracy demonstrations after weeks of street protests. VOA’s Bill Ide in Guangzhou and Pros Laput in Hong Kong spoke with protesters and observers about whether demonstrators have been too aggressive in pushing for change.
Video

Video US Immigration Relief Imminent for Mixed-Status Families

Tens of thousands of undocumented immigrants in the Washington, D.C., area may benefit from a controversial presidential order announced this week. It's not a path to citizenship, as some activists hoped. But it will allow more immigrants who arrived as children or who have citizen children, to avoid deportation and work legally. VOA's Victoria Macchi talks with one young man who benefited from an earlier presidential order, and whose parents may now benefit after years of living in fear.
Video

Video New Skateboard Defies Gravity

A futuristic dream only a couple of decades ago, the hoverboard – a skateboard that floats above the ground - has finally been made possible. While still not ready for mass production, it promises to become a cool mode of transport... at least over some surfaces. VOA’s George Putic reports.
Video

Video Falling Gas Prices Impact US Oil Extraction

With the price of oil now less than $80 a barrel, motorists throughout the United States are benefiting from gas prices below $3 a gallon. But as VOA’s Kane Farabaugh reports, the decreasing price of petroleum has a downside for the hydraulic fracturing industry in the United States.
Video

Video Tensions Build on Korean Peninsula Amid Military Drills

It has been another tense week on the Korean peninsula as Pyongyang threatened to again test nuclear weapons while the U.S. and South Korean forces held joint military exercises in a show of force. VOA’s Brian Padden reports from the Kunsan Air Base in South Korea.
Video

Video Mama Sarah Obama Honored at UN Women’s Entrepreneurship Day

President Barack Obama's step-grandmother is in the United States to raise money to build a $12 million school and hospital center in Kogelo, Kenya, the birthplace of the president's father, Barack Obama, Sr. She was honored for her decades of work to aid poor Kenyans at a Women's Entrepreneurship Day at the United Nations.
Video

Video Ebola Economic Toll Stirs W. Africa Food Security Concerns

The World Bank said Wednesday that it expects the economic impact of the Ebola outbreak on the sub-Saharan economy to cost somewhere betweenf $3 billion to $4 billion - well below a previously-outlined worst-case scenario of $32 billion. Some economists, however, paint a gloomier picture - warning that the disruption to regional markets and trading is considerable. Henry Ridgwell reports from London.
Video

Video Chaos, Abuse Defy Solution in Libya

The political and security crisis in Libya is deepening, with competing governments and, according to Amnesty International, widespread human rights violations committed with impunity. VOA’s Al Pessin reports from London.
Video

Video US Hosts Record 866,000 Foreign Students

Close to 900,000 international students are studying at American universities and colleges, more than ever before. About half of them come from Asia, mostly China. The United States hosts more foreign students than any other country in the world, and its foreign student population is steadily growing. Zlatica Hoke reports.

All About America

AppleAndroid