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3 December, 2007
An 11-day strike ended peacefully and successfully for ICEM mining affiliate FSP KEP of Indonesia at PT International Nickel (PT-Inco), a unit of Canadian-based/Brazilian-owned CVRD-Inco. The business is the world’s largest nickel operation, located on the Indonesia island of Sulawesi.
The strike started on 15 November and ended on 26 November. FSP KEP won bonus payments similar to those paid to Inco North American workers, won internal promotion procedures, made advances on local hiring versus outside contractors, and PT International agreed to hold no recriminations on workers who waged the effective, gain-filled strike.
The strike was successful due to global unity between miners and steelworkers in North America and Brazil. A year ago, when Brazilian mining giant Cia Vale do rio Doce (CVRD) bought Canadian-based Inco, unity came quickly between CVRD and INCO workers on several continents. The Indonesian strike at Sorowako, South Sulawesi, was done by 2.500 dedicated trade unionists, who won gains for 3,500 workers at a nickel mine and matte smelting operation. CVRD-Inco holds the mineral rights to Sorawki until 2025.
The strike saw FSP KEP diligently follow all legal requirements. Sjaiful Patombong, President of FSP KEP, said, “Nobody is allowed to prevent workers from using their right to strike legally, orderly, and peacefully.” Ten days into the strike, on 25 November, management was ready for talks and presented a proposal. It called for the two sides “to honour and maintain harmonious industrial relations between both parties without prejudice to the prevailing laws and regulations, including the Collective Bargaining Agreement.”
The accord produced a third quarter 2007 bonus, an item PT Inco was denying, citing uncertainty by Brazilian CVRD owners. Workers won, in addition, a production bonus in 2008 that is based on global nickel prices. If prices reach US$13-per-pound, all workers receive a 12% monthly bonus. The strike also produced a company sum for scholarships targeted to the children of PT Inco employees.
FSP KEP President Patombong recognised the global solidarity. “The ICEM and our friends in Canada (USW), the USA (USW), and in Brazil have firmly performed the global unity and solidarity between workers around our globe, particularly within the ICEM family.”
PT Inco is 61% owned by CVRD-Inco Ltd. of Canada. A 20% stake is held by Sumitomo Metal Mining Co. of Japan. The company has a US$1 billion plan on the boards to expand nickel operations on Sulawesi Island, with construction of two new processing plants.