PT Freeport Indonesia says it will increase the basic salaries of its workers in Papua by 39 percent, ending a months-long strike punctuated by violence and several deaths.
Aiming for welfare: In a Nov. 5 file photo, people from seven tribes in Papua brandish traditional weapons while blocking a road leading to PT Freeport Indonesia in Timika on Friday. They demanded that the company improve their welfare. (Antara/Spedy Paereng)
Basic salaries will increase 24 percent in the first year and 13 percent in the second year under the new agreement signed by management and the employees union in Jakarta on Wednesday, antaranews.com reported.
PT Freeport spokesman Ramdani Sirait said that the company also agreed to give employees, who were paid between $2.10 to $11.00 per hour under the old agreement, benefits, housing allowances, education aid and retirement savings.
Thousands of employees on strike since Sep.15 are expected to return to work in the next few days and full operations are expected to resume in the beginning of 2012.