Freeport-Indonesia wages the lowest in the world, according to SPSI

Bintang Papua, 3 October 2011Thousands of workers from Freeport Indonesia  have been on strike since 15 September demanding higher wages and better personal welfare, bearing in mind  the great risks that their work involves. The wages they currently receive are far from adequate and are way below the wages paid in mines elsewhere the world.

‘Of all the mining companies anywhere in the world, the wages paid to workers at Freeport are the lowest. even though the risks they take are extremely high, working at a depth of 4,200 meters. It’s very dusty, high rainfall and extremely cold, as we mine copper, gold, silver and other minerals,’ said Frans Wonmaly, member of the executive committee of the trade union SBSI.

In 2006 the workers’ pay in North America was $10.70 an hour, in South America, it was $10.10 an hour but in Indonesia it was only $0.98 an hour. In 2010, the pay had reached on average $66.43 an hour, whereas in Indonesia it was only  $4.42 – $7.356 an hour

‘As compared with mining companies elsewhere in the world, the difference is like heaven and earth, and this is why we are making demands from the management,’ he said. All they were asking for was a rise to $30-$50 an hour.

Wonmaly strongly denied a recent statement by Armando Mahler, president-director of Freeport Indonesia to the effect that the workers would be losing Rp 570,000 a day.’ I personally have reached Grade 3 and I only get Rp7 million a month. If I were getting Rp570,000 a day I would be receiving Rp17.2 million a month,’ he said, while holding up the joint contract book.  As yet, negotiations between the workers on strike and the management have not made any progress. Despite the mediation of the labour affairs ministry in Jakarta, there is a deadlock.’The management has not shown any intention to recognise the aspirations of their workforce.’

Furthermore, the management is spreading propoaganda, sending sms messages to the families of the workers and spreading reports in the local media that the workers should go back to work. Wonmaly said that the strike will continue until their demands have been fully met by the company. ‘It will continue till 16 October and if by then, negotiations have still led nowhere, the workers have agreed call in lawyers and take the dispute to court.’

According to a spokesman of the company, 1,217 contract workers have returned to work.in the higher reaches of the mine which they travel to daily by 23 buses.

The production and dispatch of concentrates is now very limited, while the management have expressed their appreciation to those workers who have remained at work.

State is obliged to protect striking PT Freeport Indonesia workers

Statement by the Coalition for the Freeport Indonesia Workers’ Struggle – September 28, 2011

We fully support the strike by PT Freeport Indonesia workers for better wages and conditions. The government must guarantee legal protection to the workers and protect them against intimidation and threats while they are on strike and conducting negotiations with the company in accordance with Law Number 13/2003 on Labour.

The strike by around 8,000 PT. Freeport Indonesia employees in Timika, West Papua, is to demand that the management bring their wages into line with PT Freeport Mc Moran wage standards in other countries. Freeport currently pays its workers as little as US$1.50 and hour and workers are demanding that this be increased to US$3 (25,000 rupiah) an hour. Freeport workers in other countries currently receive an hourly wage of US$15 or 128,250 rupiah per hour.

The Freeport management has refused to fulfill the workers’ demands. A tripartite meeting has been held between the government, Freeport management and workers, but the workers have still not succeeded in reaching an agreement.

Since the strike began on September 15, there have been numerous incidents of pressure and intimidation against the workers, either directly by the Freeport management or through the arrogant actions of the police and the Mobile Brigade (Brimob).

This includes the attempted shooting of PT Freeport Indonesia All Indonesia Workers Union (SPSI) chairperson Sudiro on September 11, the removal of employees’ rights through the “No Work, No Pay” letter, pressure on striking workers and apprentices to leave Tembagapura, contract workers being forced to work for 12 hours straight to meet production losses during the strike, replacing contract workers with as many as 100 strike breakers sent from Jakarta by the companies PT. Tri Parta Jakarta and PT. Komaritim, forced removals from the workplace and employees being forcibly picked up at their homes using DS-1643 and DS-1500 vehicles.

There has also been intimidation from PT Freeport Indonesia foreign workers through Deputy President Director John Hollow (a US citizen) who signed a letter stating that 200 permanent workers were to be laid off. The systematic threats of dismissals by the company management have been supported by the police, Brimob and Freeport security.

In one instance this involved a Freeport level 1 staff member “X”, who was not prepared to give their name because they were concerned for their personal and family’s security. X received a letter of temporary release from duties (RFD) dated September 24 from a superior. X was accused of spreading confidential company information in violation of company regulations. X was deemed to be indirectly involved because X provided the confidential company information (related to employee wages) that trigged the dispute between workers and management. Two days later on September 26, X was forcibly picked up at the Tembagapura employees barracks and then transported to Timika by the management at 6.10pm local time escorted by a Brimob officer, a superior who is well known to X, two security personnel and a company driver. X stayed overnight at the PT Freeport base camp near the Timika airport and the following day was then sent back to his home town.

The example above is evidence that the Freeport management is more interested in throwing money at security personnel that comprise members of the police and Brimob to “safeguard their assets” than pay decent wages to their workers who have worked for and served company for decades. In addition to demands for wage increases, the strikers are also reasonable healthcare facilities for workers.

The Coalition for the Freeport Indonesia Workers’ Struggle therefore states:

1. The management must immediately increase workers wages from US$1.5 an hour to US$3 per hour.

2. The management must provide the same facilities to local workers as those given to foreign workers (healthcare services, education for workers’ children)

3. It is the worker’s right to go on strike and the management does not have the right to dismiss workers that are on strike.

4. Foreign employees working at PT Freeport Indonesia do not have the right to become involved in issues between workers and the management. This is in conflict with the legal principles contained in the 2003 Labour Law and if they continue to do so, the government must deport the foreign workers concerned.

5. The police and Brimob do not have the right to become involved in industrial affairs between the management and workers, as regulated under Article 143 of the 2003 Labour Law.

Jakarta, 28 September 2011

Coalition for the Freeport Indonesia Workers’ Struggle:

The Papua Student Alliance (AMP), the Papuan Traditional Social Community Against Corruption (Kampak Papua), the Commission for Missing Persons and Victims of Violence (Kontras), the Indonesian Association of the Families of Missing Persons (Ikohi), the Papua NGO Cooperative Forum (Foker LSM Papua), the Working People’s Association (PRP), the People’s Liberation Party (PPR), the National Trade Union Preparatory Committee (KP-KSN), the Indonesian Forum for the Environment (Walhi), the Indonesian People’s Opposition Front (FORI), the Student Action Union (KAMLAKSI), the Jakarta Legal Aid Foundation (LBH Jakarta), the Indonesian Transportation Trade Union of Struggle (SBTPI), the Student Struggle Center for National Liberation (PEMBEBASAN), Praxis, the Semanggi Student Action Front (FAMSI), the Strategic State-Owned Enterprises Federation (FED BUMN Strategis), the Indonesian Pulp and Paper Trade Union Federation (FSP2KI), the West Java Federated Trade Union
for Justice (FSPK Jabar), the Central Java Indonesian Farmers Federation Union (FSPI Jateng), the Banten Primary Industries Trade Union Federation (FSBKU Banten), the South Sulawesi Nusantara Trade Union Alliance (GSBN Sulsel), the South Sulawesi Indonesian Federated Trade Union of Struggle (FSPBI Sulsel), the North Sumatra Plantation Workers Trade Union (Serbuk Sumut), Perbumi North Sumatra (Perbumi Sumut), the East Java People Based Trade Union (SBK Jatim), the Sidoarjo Independent Trade Union (SBM Sidoarjo), the Malang Independent Trade Union (SBM Malang), the Working People’s Association-Organisational Saviours Committee (KPO-PRP) and the United Indonesian Labour Movement (PPBI).

[Translated by James Balowski.]

Union makes move to end Freeport strike

JUBI, 23 September 2011

Trade union SPSI writes to Moffet in a move to end the strike

SPSI, the trade union of Freeport workers, has finally decided to write to the top executive of Freeport-McMoran in the US via the intermediary of Silas Natkime (who is referred to as the ‘bugnagel’ which means the ‘host’) after realising that there is not likely to be any settlement of the strike at the Freeport mine because the management of PT Freeport Indonesia has not shown any goodwill to resolve the problem.

Chairman of organisational affairs of the union, Virgo Solossa, said that the decision to write to the top management was taken at a meeting with the bugnegal at the Nemangkawi Institute of Mining in Kuala Kencana today.

‘We have drafted the letter and given it to the bugnegel to be forwarded to Moffet for negotiations to take place. Until we get a reply from Moffet, we will not return to work. This is our final move and we hope that this will bring about an end to the strike,’ he said.

Solossa said that this did not mean that they were handing the issue over to the bugnegel. Everything would be handled jointly, but this was because it is only the bugnegel whose help could be sought to resolve the dispute.

The request to the bugnegel is for Moffet to make recommendations as soon as possible. When approached, the bugnegel expressed his willingness to help facilitate a resolution to the strike with the FI management.

With regard to reports that a number of employees working for the contractor at Mill Operation and Underground as well as at Grasberg have gone back to work, Solossa said the union had decided to hold a peaceful demonstration. ‘We plan to approach the police and the labour service about this plan for a demonstration. This is mainly in connection with our criticism of actions taken that do not comply with the laws in force in this country. This is particularly with regard to some remarks made by a foreign member of staff which we regard as not complying with the laws in force in this country.’

According to Solossa, the actions taken by the management since the start of the strike have failed to respect the laws of this country. But Solossa was not in a position to say when this demonstration would take place. According to Solossa, ‘the demonstration will be held together with other components in society, such as the youth, students and school-children.

The news from Tembagapura is that workers at the Mill Operation and Underground factory as well as at Grasberg went back to work last night. These are workers on contract with PT Buma, Intinaker, Inamco, Visvires and PT Trakindo.

‘Production at the Mill Operation has been going on since last night, but the products cannot be sent to Portsite because they are not of the correct density,’ according to a JUBI source who works at Mill Operation. The same source at Grasberg said: ‘There is some production by contract workers of PT Trakindo, Buma and Grasberg.’

Freeport looking for more minerals to extract from Papua

Grasberg mine
Image via Wikipedia
JUBI, 21 June 2011
A crater that is many metres wide and as deep as a three-storey house is to be found at Mile Post 74 within the area of the mining concession of Freeport-Indonesia(PTFI). Thousands of people working for Freeport say that they know nothing about the mining potential of this deep crater and what exactly Freeport intends to mine there.Some of the workers are quoted as saying: ‘The company is concealing information about the minerals it plans to mine. Some have mentioned copper but more recently mention has been made of gold, silver, iron,  and other minerals about which nothing has been reported officially.’ The workers believe that as many as nine new minerals are going to be mined there.As regards the natural resources now being researched, the crater is said to be much greater than the one dug for the Grasberg mine to the north.

One worker said that it is not only a question of nine more minerals being exploited by Freeport. As regards the geo-science potential from Papua, most of the minerals will be taken abroad. One worker who is familiar with the minerals in Grasberg said that it is only if the minerals are processed here and not taken abroad that we will be able to know what Freeport it intending to extract. ‘It is likely that the stuff will be taken abroad through pipes so that no one here knows what is there.

Another report from JUBI of the same day says that foreign investors are busy investigating what more they can take away from Papua. Freeport undertook a major research a while ago near Kampung Ugimba.

‘People from the company who work in Tembagapura have been seen frequently coming and going, and we have been told that there is uranium there.’

JUBI has been told that aerial surveying – aerogeophysics -has been used to survey the mineral  potential.

They have been using helicopters  to assess the uranium potential, he said. Once this has been ascertained, more conventional techniques will be used.

As yet, Freeport has said nothing about these searches. But for sure, the company has been undertaking many surveys in various parts of Papua.

(West Papua Media Comment:  At this time of great market uncertainty about uranium and the safety of nuclear power following the still ongoing Fukushima reactor disaster in Japan, it beggars belief that Freeport and its main shareholder, Rio Tinto, are conducting illegal (uncontracted) exploration for potential uranium deposits (of which there are large amounts around the Grasberg complex).  It is also very curious that this is the exact area that the unsolved shootings and bombings of Freeport workers has been occuring over the past two years, yet in an “unsecured” environment this exploration and processing has been able to occur.  If the Indonesian civilian government were to set up a National Audit of all Freeport activities, they would see clearly that the military-corporate collusion is reaping massive financial benefits, just not for either West Papua, nor Indonesian people.)

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