Freeport Indonesia and Union Reach Agreement in CLA Talks
Joint Press Release - 16 October 2013
Jakarta- PT Freeport Indonesia (PTFI) and the PTFI Chapter of the All Indonesian Workers Union in the Chemical, Energy, and Mining Sectors (PUF-FSP KEP SPSI) are pleased to announce a successful conclusion to negotiations on terms to be incorporated in the 18th Collective Labor Agreement (CLA) for the period 2013-2015.
Both parties have agreed in principle on the substantive terms to be included in the CLA including a base pay increase for the workers. Enhancements in the pension plan and other benefits were also agreed upon. The negotiating teams are now in talks to settle the remaining details and expect to formalize the CLA before the end of October.
“We are very encouraged by this development which saw the management and union agreeing on what’s best for the worker’s welfare and PTFI’s operations,“ said PTFI President Director, Rozik B. Soetjipto.
“The agreement on substantive matters of the CLA negotiations reflects the spirit of openness and partnership between the workers and PTFI Management. We welcome the outcome of these negotiations which has been reached peacefully without having to go through a strike. Our goal was to address the worker’s wellness through the company’s success. We hope this will be realized through this agreement. In the future, if the company makes a profit, the workers will enjoy the benefits,” said Chairman of the PTFI Workers Union, Sudiro. “It is our hope that the company will adopt the same commitment and apply the principles of equality and partnership in advancing the company and improving the welfare of the workers and their families,“ Sudiro added.
“We thank all our employees, local communities and the Indonesian Government for their continued support and cooperation throughout the CLA talks,“ said Soetjipto, adding that the amicable conclusion of the CLA is an important milestone and sets the stage for greater unity and teamwork in the company which is essential to meet the economic challenges facing the industry and PTFI.
The 18th Collective Labor Agreement will be retroactive to October 1st, 2013 as agreed to by both parties.
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