Sun, 16 Aug 1998

Freeport workers end strike

JAKARTA (JP): After being on strike since Aug. 10 to demand a pay increase and protest alleged discrimination against local staff, PT Freeport Indonesia employees in Irian Jaya agreed on Friday to return to work.

Company spokesperson Yuli Ismartono said in a statement yesterday that the strike ended "without incident" but did not specify the agreement between the workers and the company.

"The wildcat strikers agreed to return to their workplace without incident following successful deliberations with the government of Indonesia and company authorities. The mill and mine facilities began resumption this (Friday) evening," she said.

The labor strike involving about 5,000 local employees hit PT Freeport's Grassberg complex. The industrial action forced the company to suspend its mining and milling operations as safety measures. However, the loading and shipping of concentrate at the port facility continued, Yuli said.

Beside striking for a pay hike, the strikers demanded that the company eliminate alleged corruption, collusion and nepotism within the firm; reinstate employees fired for their labor activism and reintroduce a regulation on annual leave.

They also protested at what they saw as discrimination against local employees which they claim is evident in the salary scale by which locals are paid less than foreign employees of the same seniority. "The management of Freeport Indonesia will continue its practice of reviewing its package of wages and benefits to ensure that it remains competitive with other companies," Yuli said. (pan)