Mining giant Freeport Indonesia has told striking workers to be realistic with their demands, after more than a thousand employees walked off the job ahead of May Day this week.
“In a condition full of uncertainties, resulting from a widening budget deficit, a depreciated gold price and a weakening external situation, all parties as a single community should have a realistic hope and together face the possibility of economic slowdown in Indonesia,” the company said in a statement.
Some 1,100 workers, employed by contractors and not directly by Freeport Indonesia, went on strike at Freeport’s Grasberg mine in Papua on Tuesday to demand higher wages.
Workers from contractors Jasti Pravita, Osato Seike and Srikandi Mitra Karya were involved in the latest action, according to Freeport. They were mostly construction workers hired to expand the mine, their union said.
Union official Virgo Solossa said the workers were threatening a month-long strike.
“But we hope the workers and the firm can reach a deal on pay before that,” he added.
An official from the union representing workers directly employed by Freeport said none of its members were involved in the action and had no plans to strike.
“The strike will obviously slow our activities, but we have yet to anticipate any direct impacts to our mining operation and production,” the company said.
The statement added that the company was committed to complying with the nation’s labor laws and demanded that contractors also comply.
“We will not be hesitant to slap sanctions on contractors disobeying the Labor Law,” it said.
In 2011, Freeport Indonesia’s operations were hit hard when thousands of employees went on a three-month strike to demand better pay. Clashes between the workers and security officers left one person dead.