Freeport, workers move closer to end strike with pay rise deal

After more than three-months long of workers? strike, workers and board of management of PT Freeport Indonesia are moving closer to reach an agreement to end the strike with a pay rise deal which will be included in the 2011-2013 Collective Labor Agreement (PKB).

The three months strike has almost paralyzed the operation of Grasberg copper mining, operated by the company, a subsidiary of Freeport-McMoRan Copper and Gold.

Spokesperson of Freeport Indonesia workers union, Juli Parorongan said both parties have principally agreed for a 37 percent increase of workers? salary for two years. In the first year, the workers? salary will increase by 24 percent and further increase of 13 percent in second year.

July said both parties have yet to sign the agreement as they still need to clarify some points of the agreement.

The union initially asked for pay to be raised to as much as $200 an hour, versus current pay of around $2 to $3 an hour. It had steadily dropped its demand in recent weeks to around $7.50 an hour, a level sttll deemed ?excessive? by Freeport?s chief executive, Richard C. Adkerson, who has been in Jakarta to help broker a deal. (*)