http://www.thejakartapost.com/detaileditorial.asp?fileid=20070424.E01&irec=0
Freeport strike The local workers of giant gold and copper miner PT Freeport Indonesia in Timika, Papua, a subsidiary of U.S.-based Freeport McMoran, taught the nation, including their fellow Papuans and the country's businesspeople and laborers, a precious lesson last week. Even Vice President Jusuf Kalla, who had just expressed his displeasure over the trend of labor demonstrations, probably had to swallow his words because the workers in Papua proved that peaceful actions can achieve much. The lesson is even more interesting because it came out of Timika, a city with a history of violent demonstrations. Thousands of Freeport workers won nearly everything they were asking for on Saturday morning, after a four-day peaceful walkout. The strike, the biggest since the company started to operate in the early 1970s, certainly cost the state a huge amount, in terms of lost potential revenue. In the end, Freeport agreed to raise the workers' monthly basic salary from Rp 1.6 million (US$174) to Rp 3.1 million, Rp 500,000 less than they were demanding. The company also agreed to reestablish its Papuan Affairs Department and replace several executives who the workers saw as reluctant to deal with Papuan employees. It is rare in Indonesia for a major company to respond so generously and promptly to the demands of workers. For this, the world's largest gold producer and second largest copper producer deserves commendation. We believe Freeport's decision was not just caused by fears of falling production. Perhaps the company was more willing to listen and negotiate because for the first time, employees staged a strike that was peaceful. There is a perception nationally, and even internationally, that Freeport prefers the use of power in handling unrest and protest. At the same time there is the perception that Indonesian workers, including those at Freeport, tend to resort to violence in seeking more money or better working conditions. Freeport workers finally realized they are an important part of the company, and that they must grow together. They certainly do not want to follow the orders of outside parties who are more concerned with their own interests than the well-being of the workers. And Freeport seems to have finally understood that in the end, the prosperity and security of its workers is key to its own growth and sustainability. In the past, the military and police were often used to clamp down on protests against the company. The use of force may be effective and cheap in the short run, but it costs Freeport dearly in the long run. Freeport is a magnet not just for Papuans but also the country's political elite who want to mine profits from the company. Last year alone Freeport paid US$1.6 billion in taxes to the government, a 33 percent rise from 2005. Freeport produced 435 million pounds of copper in the fourth quarter of last year and 514,000 ounces of gold, the company announced in January. It employs about 9,000 workers, including 3,000 Papuans. Although the number of Papuan employees has steadily increased, Papuans complain very few of them ever rise to management positions. Human rights abuses, the unequal distribution of wealth and the disrespect shown by the central government toward Papuans are among the major complaints in the province. That the region is to any extent rebellious is because Papuans feel they are treated like second-class citizens, kept in poverty despite the abundance of natural resources in their home province. Freeport employees have shown that a peaceful and civilized approach can be very effective, while the company sent the message that it is ready to change for the better. The workers' demands were not just about financial welfare, but a guarantee for a sustainable future. Both sides deserve praise for teaching the rest of the country such a golden lesso
