Freeport Pay Hike Has Adverse Effect On People's Economy

Timika, Papua, Oct 29 (Antara) - An agreement to raise the pay of the workers of PT Freeport Indonesia, has resulted in a surge in prices that add to the burden of most of the local people especially those having no permanent jobs. The US company, which has big gold and copper mines in Papua, bowing to workers` demand, has agreed to raise the pay of its miners by 10 percent this year and 10 percent next year. Head of the Mimika district manpower office Dionisius Mameyao said here on Tuesday the prices are rising in Timika especially those of essential goods. "The impact is certain to be not favorable for the people in general. The majority of local people would certainly to suffer," Dionisius said. He said he hope the related institutions of the Mimika district would seriously address the problem to strictly control the price from going too high. "Traders should not take too much advantage of the Freeeport`s workers pay hike," he said. The agreement on the 20 percent pay hike in two phases was signed in Jakarta on Oct. 22 . With the agreement the pays of Freeport`s miners would be more than Rp10 million a month on the average as against less than Rp2 million in most other region. The agreement also put other companies in Papua in difficulty as they are forced to face demand for proportional increase in pay from their workers. "A number of Freeport`s contracting firms are already negotiating with the leaders of their workers," Dioninsius said, adding other are preparing for similar negotiations. There are more ten companies operating as contractors and suppliers for Freeport in the regency of Mimika, he said. They are small and big, local, national and and international contractors, he added.