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1)Police urge Freeport management, labor union to establish communication
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Timika, Papua (ANTARA News) - The Mimika Police in Papua Province have called on the management of PT Freeport Indonesia to forge communication to tackle problems by negotiating with its workers who are currently on a strike.
"We hope that both sides would build communication and begin constructive dialog to find the best solutions acceptable to the two parties. If the problem is not solved, and the workers cannot work, it will disadvantage several people, including the workers," Victor Dean Mackbon, head of the Mimika Police Resort, stated here, Wednesday.
He urged the labor union to reconsider its month-long strike that began on May 1.
The police have urged those on strike to not intimidate workers opting to work.
The labor union and PT Freeport should initiate negotiations, and all workers should go back to work while awaiting the results, according to Mackbon.
The cooper and gold mining company is operating normally despite the strike, as several workers chose not to join the strike.
"During the May Day celebration, we told the labor union to not compel all workers to join the strike. This is in accordance with the recommendation of the Mimika District Administration," he noted.
Thousands of workers of the US gold and copper mining company PT Freeport Indonesia began staging a month-long strike, to last until May 30, 2017, after they failed to reach an agreement with the companys management.
Chairman of the Chemical, Energy and Mining Workers Unit of PT Freeport Indonesias All Indonesian Workers Union Yafet Panggala stated on Monday that the strike was staged to coincide with the observance of International Workers Day or May Day.
"We waited that the management will demonstrate good will and accept our demand by 12 a.m. Eastern Indonesia Time (WIT) last night. However, nothing materialized, and an agreement was not reached. Thus, our letter of notification to the management and the government to stage a strike is valid," Panggala stated.
The strike by PT Freeport Indonesias workers will be followed by the companys contractors and other affiliated firms that are grouped in 14 work units, according to Panggala.
However, Freeports contractors and affiliated companies will join the strike on May 9, 2017, as stated in their strike notification to the local Manpower, Transmigration and Housing Service in Mimika.(*)
"We hope that both sides would build communication and begin constructive dialog to find the best solutions acceptable to the two parties. If the problem is not solved, and the workers cannot work, it will disadvantage several people, including the workers," Victor Dean Mackbon, head of the Mimika Police Resort, stated here, Wednesday.
He urged the labor union to reconsider its month-long strike that began on May 1.
The police have urged those on strike to not intimidate workers opting to work.
The labor union and PT Freeport should initiate negotiations, and all workers should go back to work while awaiting the results, according to Mackbon.
The cooper and gold mining company is operating normally despite the strike, as several workers chose not to join the strike.
"During the May Day celebration, we told the labor union to not compel all workers to join the strike. This is in accordance with the recommendation of the Mimika District Administration," he noted.
Thousands of workers of the US gold and copper mining company PT Freeport Indonesia began staging a month-long strike, to last until May 30, 2017, after they failed to reach an agreement with the companys management.
Chairman of the Chemical, Energy and Mining Workers Unit of PT Freeport Indonesias All Indonesian Workers Union Yafet Panggala stated on Monday that the strike was staged to coincide with the observance of International Workers Day or May Day.
"We waited that the management will demonstrate good will and accept our demand by 12 a.m. Eastern Indonesia Time (WIT) last night. However, nothing materialized, and an agreement was not reached. Thus, our letter of notification to the management and the government to stage a strike is valid," Panggala stated.
The strike by PT Freeport Indonesias workers will be followed by the companys contractors and other affiliated firms that are grouped in 14 work units, according to Panggala.
However, Freeports contractors and affiliated companies will join the strike on May 9, 2017, as stated in their strike notification to the local Manpower, Transmigration and Housing Service in Mimika.(*)
Editor: Heru
2) Gov't, Freeport Start Contract Negotiations
Jakarta. Indonesian authorities on Thursday (04/05) kicked off negotiations with Freeport McMoran over a contract dispute that has prompted the US mining giant to scale down operations in the eastern province of Papua.
CEO Richard Adkerson met with mining ministry officials in Jakarta to start talks over a range of disagreements including legal assurances over investments beyond 2021, tax rates, and a government requirement for Freeport to divest a 51 percent stake in its local operations.
"We have work to do, issues to discuss, but we're all going in this with goodwill and optimism about reaching a win-win situation," Adkerson told reporters after meeting with mining minister Ignasius Jonan and other officials from the central and Papua provincial government.
"For Freeport, the key issue is having assurance about our ability to operate," he added.
Teguh Pamuji, secretary general at the mining ministry, said the negotiations would focus on fiscal certainty, taxes and royalties, divestments, and the development of smelters.
The dispute arose after Indonesia revised its mining rules in January, which brought Freeport’s copper concentrate exports to a halt and led to the company scaling back operations and temporarily laying off thousands of workers in the impoverished Papua province.
To comply with the new rules, Freeport and other miners are required to convert their original contracts of work to a special contract. Freeport, which argues this requirement and others violate its existing contract, has threatened arbitration.
But both sides have recently softened their tone, saying instead that arbitration is a last resort.
"So long as we're progressing to [a] ... mutually acceptable resolution, there would be no arbitration," Adkerson said.
Freeport was last month granted an export permit valid until February 2018, allowing it to resume export shipments until at least October 2017, pending further negotiations. The move came after US Vice President Mike Pence visited the Southeast Asian nation.
A Freeport workers' union started a month-long strike on May 1 aimed at ending the company's layoffs and furlough policy.