Against Extractive Industries

A SIA N L A BOU R U P DATE
PUBLISHED BY ASIA MONITOR RESOURCE CENTRE, HONG KONG
Issue 80
January 2012 - April 2012
In this issue:
No Economic and Job
4
Growth in Mining Industry
in the Philippines, Only
Plunder Need to Run
By Daisy Arago
Mining Sector and its
Future in India
By Ramamurthy
Sreedhar
Against Extractive Industries

In a very real sense, the extractive industries represent the earliest phase of
global factory, the beginning of the basic production circuit, and the foundation
of the web of global production networks that form todays global economy. The
extractive industries, the holes maker in the ground as Peter Dicken put it
correctly, become strategic sector that supply raw materials to many other
industries. There is almost none of modern production disconnects from the
extractive industries for raw materials.
The foundation of the extractive industries is a notion of natural resources. In
fact, natural resources are not naturally resources as it is both a socio-cultural and
a political construction. The industry has been a political project that involved
aggressive intervention of both transnational corporations and national
governments by imposing vast range of regulation that serve their interest. There
is no doubt that corporations and states exploit natural resources for capital
accumulation.
Due to the operation of extractive industries, there have been massive
environmental destructions, coercive displacement and dispossession of the
indigenous people from their habitat. Many of these people have lost their lands,
livelihood, and even their lives. Their habitat has been extinguished where their
lives rely heavily on it. And there are more people who are in the verge of being
displaced and dispossessed due to the industries aggressive exploitation.
The Case of Freeport Mc- 19

Morran Copper & Gold
Inc in Indonesias
Extractive Industry
By Abu Mufakhir
Trans-National
25
Corporations in Extractive
Industry and the Struggle
Against them: The Case
of Malaysia
By Charles Hector
Australian Mining
Companies' Resistance
to Collective Bargaining
By Michael Walker
31
Report Highlights Crisis

of Occupational Safety
and Health in Asia
By Omana George
35
Luviana Ariyanti: The

Struggle of a Female
Journalist for Labour
Rights in Indonesia
By Yohana Sudarsono
37
Regional Round-up
41
Resource/Review
48
The recent case of London-based global metals and mining giant, Vedanta
Continue to page 3
ASIAN LABOUR UPDATE - 80
13
www.amrc.org.hk
Contributors & Editorial Board
ASIAN LABOUR
U P DAT E
ISSN 1815-9389
Issue Number 80
January - April 2012
Copyright 2012 Asian Labour Update; all rights reserved
Daisy Arago is Executive Director, Center for Trade

Union and Human Rights (CTUHR), Quezon city,
Philippines. Email: daisy.arago@gmail.com.
www.ctuhr.org
Ramamurthi Sreedhar, is chairperson of mines, minerals & PEOPLE, India. Email: environics@gmail.com
Abu Mufakhir is researcher with Sedane Labour

Resource Center (Lembaga Informasi Perburuhan
Sedane, LIPS), Indonesia. Email:
abusurd_13@yahoo.com
Charles Hector is human right activist, based in Malaysia. Email: easytocall@yahoo.com
Michael Walker is a union ocial in Sydney, Australia. Email: radicalcentre11@gmail.com
Yohana Sudarsono is an activist with Independent

Educator Union (INERU) Indonesia - Aliated to
Federasi Serikat Pekerja Kerakyatan Karawang - Member of KSN (National Union Confederation) Indonesia. Email: ineru.indonesia@yahoo.com, yosudarsono@ymail.com
The Research Institute for Alternative Workers

Movements (RIAWM), South Korea (http://
www.pssp.org)
Noel Colina, Executive Director at Institute for Occupational Health and Safety Development (IOHSAD),
Philippines
Sedane Labor Resource Center (Lembaga Informasi

Perburuhan Sedane, LIPS), Indonesia
Amirul Haque Amin, President of National Garment

Workers Federation (NGWF)
EDITORIAL TEAM
Sanjiv Pandita, Omana George, Wulandari,
Sally Choi, Fahmi Panimbang
ASIAN LABOUR UPDATE (ALU) is a quarterly news
bulletin on labour issues in southern and eastern
Asia. It is prepared and published by the Asia Monitor
Resource Centre Ltd (AMRC), a non-prot, prolabour, non-governmental organization based in
Hong Kong.
Articles and information in ALU may be reproduced in
non-prot publications with clear citations, credit to
author/s and ALU. For online reprints, please notify
us of the relevant URL; for printed matter, please
send one hard copy to the address below.
ALU articles do not necessarily reect views and
positions of AMRC.
Opinions to the editor are encouraged. Asian labour
groups and NGOs may ask for complimentary
subscriptions.
The Editor
Asia Monitor Resource Centre
Flat 7, 9/F, Block A
Fuk Keung Industrial Building
66-68 Tong Mi Road Kowloon, Hong Kong
Tel: (852) 2332-1346
Fax: (852) 2385-5319
Email: amrc@amrc.org.hk
URL: http://www.amrc.org.hk
Photo cover by CTUHR, Philippines.

TMC Nickel strip mining, the place used to be a
mountain beside the bay ve years ago, today, it is
reduced to a smoldering plain
ASIA MONITOR RESOURCE CENTRE
Editorial
Resources, shows that many of corporations in
the industries have been the notorious examples
in violating human rights, indigenous rights and
environmental laws from the beginning of their
operation. Mining companies are vigorously antiunion in outlook and have a long history of
victimising, sacking union activist, and even killing
the people.
Dedicated for those who have been the victims of
this development, the current issue of Asian
Labour Update presents the picture of extractive
industries in Philippines, India, Indonesia,
Malaysia and Australia. The issue is aimed to
uncover the very ugly face of the extractive
industries. Against the rhetoric of the industries
contribution to the economic growth, the cases
show the complete opposite. For example,
although the Philippines gold reserves amounted
to at least 16.873 billion US dollars or about 76 per
cent of the countrys GDP in 2011 which
according to Philippines National Statistical
Coordination Board is sucient to completely
eradicate poverty in the country Philippines
remains one of the poorest nations in the region.
As Arago describes on the Philippines case in her
article, one of the major push factors in poverty
increase in the country is the massive
displacement of shing and farming communities
and subsequent loss of livelihood due to largescale mining operations. It is clearly not the case
that mining operation spurs the growth for the
people. On the contrary, it has been impacting
social life and creating huge environmental
catastrophes.
In India, mining sector has a low contribution to
the economy as GDP from the sector has never
exceeded ve per cent even after liberalisation.
Villages in the mining regions, as Ramamurthi
explains in his article, are getting devoid of
drinking water due to increased competitive use
of water by the industry, which huge quantum of
water for 300 million populations is being gulped
by the mining industries. Besides, forty-two per
cent of households in villages in India live without
electricity whereas the industry is consuming the

major share of electricity.
The case of Indonesia has also shown clear
example how the extractive industries have
brought about a huge impact on people and
environment. Today the only largest gold reserve
in the world is in the poorest province of
Indonesia in West Papua. Since 1960s, the gold
mining in West Papua has been virtually under
complete control of US-based TNCs, including
Freeport Mc-Morran Copper & Gold Inc. Since
1991, through the extension of second contract,
beneted with the area concession of 2.6 million
hectares, Freeport Mc-Morran Copper & Gold Inc.
had expelled people from their land. In his article,
Mufakhir describes that recently at least 60
people were killed and 148 people were
imprisoned for obstructing Indonesias mining
investment. The recent strike involving at least
12,000 workers took place from June 2011 till early
2012, the longest since Reformasi in 1998. During
the strike there were at least seven Freeport
workers died, not to include two victims from
traditional mining area.
In Malaysia, Hector exposes the issue of the
Australian TNC, Lynas Corporation Limited. He
describes that Lynas Corporation decided to ship
rare earths ore from its mine in Mount Weld to
Malaysia, where it was to be processed into highly
sought after rare earths metals at its facility in
Gebeng Industrial Zone in Pahang. As a result,
medical examinations on children in the
processing area found that nearly 40 per cent of
them suered from lymph node diseases,
turbinate congestion and recurrent rhinitis. Seven
of the leukemia victims have since died.
Given this barbaric nature of corporation in the
extractive industries, it is important for the social
movements to resist against the extraction in any
way. Indigenous people, workers, and society in
general should have democratic control over their
lands, their own natural resources, and their
livelihood.
Feature
No Economic and Job Growth in Mining Industry in

the Philippines, Only Plunder Need to Run
Daisy Arago
The Philippines has about $840 billion (about
P36.64 trillion at P43.62 per US dollar)-US$ 1 trillion worth of mineral deposits
which include gold, copper, nickel, chromite,
manganese, silver and iron according to the US
Department of State estimate[1]. The country
ranks rst in the world with the largest iron ore
deposit, third in gold, fourth in copper, fth in
nickel and sixth in chromite deposits.[2]
The Philippine gold reserves alone can amount to
P7.36 trillion, (US$16.873 billion) or about 76 percent of the countrys gross domestic product
(GDP) of P9.73 trillion in 2011. This amount according National Statistical Coordination Board
(NSCB) is enough to completely eradicate poverty in the country.[3] Perhaps, there are more,
but still undiscovered.
the Aquino government formulated, the mining

industry was identied as among the key areas
where intensive promotion, industry development and a more focused incentives package
will be pursued. This aimed to increase exports,
encourage foreign and domestic investments and
thus generate employment.[5] In embracing the
plan, the Department of Labor and Employment
(DOLE) placed the mining industry as the fth
expected employment generator, next to agribusiness, cyber-services, health and wellness,
hotel restaurant and tourism industries. Manufacturing sector which normally creates more jobs
was only placed at number eight in the key priority areas.[6]
Two years into the Aquino government, the approved Mining Production Sharing Agreement
(MPSA)[7] an agreement often granted to large
Whilst mining operations started several decades
scale mining operations already rose from 275
ago and liberalized in 1995 by
MPSA in 2009 to 340 as at
virtue of the passage of the
March 31,2012. Fully operaPhilippine Mining Act of 1995
tional metallic mining compa(Republic Act 7942), this
nies now stand at 30.[8] MinThe Philippine gold
wealth is still largely uning investments on the other
reserves alone can
tapped, Yet, despite what the
hand, reached $618.50 million
amount to P7.36 trillion,
industry players call as failure
in 2011, though lower than
to maximize the potentials,
(US$16.873 billion) or
the governments $1.4 billion
mining operations (from both
about 76 percent of the
target. This year (2012) the
large scale and small scale
government expects to raise
countrys GDP of P9.73
metallic and non-metallic minthe mining investments to
trillion in 2011. This
ing) already registered a Php
$2.27 billion.[9]
106.1 Billion (US$2,432.4M)
amount according
Whilst these statistics glow
Gross Production Value at the
National Statistical
and could further fuel more
end of the Arroyo governCoordination
Board
mining transnational corporament in 2009. [4]
(NSCB) is enough to
tions (TNCs) to rush to the
It was no surprise therefore
Philippines, the workers and
completely eradicate
that the Philippine Developpeople that the Aquino govpoverty in the country
ment Plan (2011-2016) or the
ernment professed to have
so-called Social Contract that
not limited to mining alone, but includes quarrying. The Center for Environment
Employment Contribution of
Mining and Quarrying
Year
# Employed
% to total
Employment
2007
149.000
0.4%
2008
158,000
0.5%
2009
169,000
0.5%
2010
197,000
0.5%
2011
210.000
0.6%
Source: MGB, Mar 2012
social contract with and promised to get uplifted

by mining operations seemed to have forgotten.
In a country where more than 10 million ablebodied people are either unemployed or underemployed[10] and about 30 million experience
hunger, the nagging questions that needed to be
answered are: Has the increase in number of mining companies and gross production value in mining resulted in increase in jobs? Or has this resulted to the improvement in livelihood of communities where mining operations exist? Do mining
operations spur growth for majority of Filipino
people?
Concerns noted that jobs generated from mining

are mostly from small scale mining operations and
not from mining TNCs.[12]
The recently concluded International Solidarity
Mission on Mining (ISMM) held from April 25-30,
2012[13] oers a more concrete picture of what
the Philippines extractive industry does to the
Filipino workers, people and the environment.
CARAGA region (Region XIII), considered as the
countrys mining capital and one of the areas covered by the ISMM, presents a paradox of growth
in mining operations. Mining operations account
to only 2.6% of employment in the region translated into 23,138 workers. MGB CARAGA Director
Mr. Alelo Ensomo admitted that not only this is
far too little, but the nature of jobs generated by
mining is mostly contractual and unskilled, i.e jobs
ranging from three months to nine months only.
[14]
An ocular visit at the nickel extraction or strip mining operations sites of Sumitomo- Taganito Mining Company (TMC), Zenshou Mining (Chinese
Employment too little, and contractual in nature
company) and
Platinum Group Metals Corp
(PGMC) in Surigao del Norte,
Contrary to what the governtens of dust sweepers, loadment wants to impress to
ers/haulers and handful mathe public that increase in
Has the increase in
chine operators are the only
mining operations would
visible workers, though TMC
number of mining
result to increase in jobs, the
reportedly has about 1000
countrys mining industry
companies and gross
workers. PGMC has a purchascontributes too little in emproduction value in
ing agreement with the Ausployment generation.
mining has resulted to
tralian company-BHP Billiton,
one of the worlds biggest
The NSCB revealed that minthe improvement in
mining company.
ing and quarrying industry
livelihood of communities
had the least contribution to
where mining operations
In Philsaga Mining CorporaPhilippine economic and emtion (Philsaga) -- a subsidiary
exist? Do mining
ployment growth in the periof Australian based Medusa
od of 1998 to 2010.[11]
operations spur growth
Mining Limited in Agusan del
for majority of Filipino
Sur, data gathered by ISMM
Data from the Mines and
people?
noted that there are only
Geosciences Bureau (MGB)
about 700 regular or permashow that to date, the minThe answer to all
nent workers out of an estiing operations only employ a
mated 4,000 workforce. Philmere 0.6 percent or 210,000
questions is NO.
saga is engaged in gold and
workers in 2011. This gure is
The answer to all questions is NO.
Gate of Philsaga Mining Corp, Agusan del Sur (Photo:CTUHR)
silver extraction and has its own milling plant.

Together with Philex Gold Philippines Inc, its
MPSA covers 6,262 hectares of land in Agusan del
Sur and Surigao del Sur.
Even in other regions where gold mining started
much earlier than in CARAGA such as in Lepanto
Mining Corporation Benguet, Cordillera region,
jobs are not only decreasing in the last four years
but remaining employment is being contractualized. From the total workforce of 1.700 regular
workers in 2003, it is now down to 600 regular
workers after more than a thousand workers
were dismissed since the 2007 strike. Subsequently, they were replaced by 800 contractual
workers, who are paid half the wage that regular
workers are receiving. They are also deprived of
any benets given to regular workers.
Not only does mining operations fail to generate
more jobs, it also fails to cut down on underemployment. By the end of 2011 for instance, CARAGA posted one of the highest underemployment
in the country accounting for 26.6% or 1.9 million
workers next to Bicol region (Region 5)another
mining areaat 35.4%.[15]
Yet, by the nature of mining operations that exist
in the Philippines, which is, extractive and export

oriented in nature, the scant employment contribution is hardly surprising. Mining TNCs that are
given every right to extract all mineral in areas
covered by their MPSAs export mineral ores to
other countries for processing. Mineral ores from
nickel mining operations for instance are exported to South Korea, China or Japan for processing
as there is only one nickel processing plant in Philippines which is based in Palawan. Sumitomos
HPAL (nickel plant) is yet to start its full operation
next year. This is to say that in spite of the tremendous wealth from mineral deposits that the
country has, the possibility for massive job generation is extremely limited as there is no industry
being developed nor skills and technology are
learned for jobs available, no matter how few
they are, are largely unskilled.
Wages are unjustly low and discriminatory
Every two days, Philsaga Mining Corp, reportedly
produces a 17-18kgs gold bar. [16] If the 2011 average world market price of gold per troy ounce
(US$ 1,570.25/0z)) is used, the companys production every two days translates to a whooping US$
858,220.14 or Php 36.474 Million (at an exchange
rate of US$ 1=Php 42.50). In a months time, Phil-
saga can get as big as US$12.873 million. This does

not include the silver production which the report
did not say.
Its workers however, have yet to benet from the
gold and silver mine. At the ISMM, some key informants and Philsaga workers for example, of
whom 82% are contractuals are aghast upon learning of the huge wealth they produce for the company as they struggled hard to keep both ends
meet. Contractual workers are paid a measly
Php233/day (US$ 5.48), lower than the P241 prescribed minimum wage in the region. Probationary workers are paid slightly higher at Php279/
day.
Skilled workers also complained that their 30
years experience gained from other gold mill
plants have only earned them Php 349-Php369/
day ($8.21-$ 8.68) salary plus the mandated holiday and sick leaves. This is not commensurate to
our skills, the workers assigned to the milling
plant told the ISMM. Only a handful of skilled
workers such as the geologic mapper (doing exploration both surface and underground mapping) are paid Php 15,000 (US$352.94) per month
after working for more than two years as contrac-
tuals.
Residents in another town of Surigao del Sur, also
shared that workers at Marcventures Mining Development Corp (MMDC)- an Australian company
in Cantillan are paid even lower at Php230/day.
They are mostly recruited from other towns instead of Cantillan presumably as pressure tactics
against the local government ocials who continually refuse to grant mining permit to MMDC and
oppose mining operations in their municipality.
In Lepanto Mining Consolidated Corp (Lepanto
Mining) in Benguet, wage discrimination against
contractual workers is sharper. Regular workers
for instance get a little more than Php 500 ($11.76)
a day, way above the Php255 ($6.00) minimum
wage in the region as a result of the unions collective bargaining agreement. (CBA). In contrast,
contractual workers only receive Php 200 ($4.71)
per day.
The Philippines has about 500 existing wage levels as a result of implementation of Republic Act
6727 or Wage Rationalization Act of 1989. There is
no denite criteria how wages are determined
except the governments broad classication of
regions, provinces and towns into urban, non-
Mamanwa tribe displaced by the military operations to pave way for the Taganito Mining exploration, Surigao del Norte (Photo: CTUHR)
pany that has been existing for

70 years now in Benguet,
Data from the Mines
northern part of the Philipand Geosciences Bureau
pines, violations of health and
safety standards. persist. The
(MGB) show that to
company provides the workers
date, the mining
with Personal Protective
operations only employ
Equipment (PPE) such as skull
a mere 0.6 percent or
guard, lamp and boots, but not
This explains the dierences in
enough to keep them safe. The
210,000 workers in
wage levels receive by workworkers have to provide their
2011
ers in dierent companies or
own mask, and to save, they
even in the same company or
contend with cheaply priced
industry located in dierent
towel as alternative. This is no match to temper
provinces or regions. Of course, the mining TNCs
the poisonous gas and chemicals that they are
can argue that they comply with the minimum
forced to inhale while underground. Ventilation is
wage as prescribed by RA 6727 with respect to the
also poor and miners work in their undergarments
regular workers and that the law is to blame for
to shake o the heat. Workers accounts at the
the low wages that Filipino workers get.. Even if
ISMM note that many of their colleagues contractthey comply, they can certainly pay more decent
ed tuberculosis.
wages to their workers considering the super
Apart from that, workers are prone to waterprots they generate from their operations.
borne diseases due to ooding in the mines. Many
RA 6727 has been severely criticized and various
workers they said got eczema from work.
progressive and militant unions and labor rights
Workers at Philsaga share similar experiences, but
organizations have in fact called for its repeal.
with some twists. Regular workers are also providThere are many reasons to scrap this law, Not only
ed with skull guard and boots for free, except that
this is ridiculous, as oil and commodity prices in
most of them are in the administrative work, Casuplaces outside Metro Manila are often higher,
als and contractual workers who dominate the
there is simply no decent logic in the law. It is
underground workers have to pay P500 each as
highly divisive of the Filipino working class and
safety deposit, to be returned when their contract
weakens its capacity to wage a struggle for across
or employment ends and in case of loss. Asked if
the board national wage increases. The law legalizthey have known any experience where the P500
es the exploitation of Filipino workers by TNCs
was returned upon employment termination, and
and their local partners by oering them cheap
they said none.
labour outside of Metro Manila, such as in the cases of Fee Trade Zones (FTZs) or
Mining Industry Contribution to the Economy
Special Economic Zones
2009
2010
2011
(SEZs), mining and TNCs planTotal Earnings by Mining CompaPhp 144.4 B
tations.
nies
urban, agricultural areas. Agricultural area is subdivided into
plantation and non-plantation,
which is further sub-classied
according to the number of
workers employed. The capacity of industry to pay higher
wages is not factored in.
Violations of health and safety

standards persist.
Filipino mining workers are not
only exposed to exploitative
wages but also on various occupational risks.
In Lepanto Consolidated Mining Corp - a gold mining com-
Contribution to GDP
Contribution to Employment
Total Exports of Minerals & Mineral Products
Total Exports of Non-Metallic
Mineral Products
Taxes, Fees and Royalties from
Mining
0.80%
0.50%
$33.986 M
1.00%
0.50%
1.00%
0.60%
$1,470 M
$1,929 M
$2,659 M
$156 M
$162 M
$177 M
P12,380.3 M
P13,373.4 M
P1,211.8 M
$291,302
$314.668.24
$ 28.512.94
Source: Mines & Geosiences Bureau
Independent unionism is either outrightly sup

pressed or halted through the use of yellow un
ion.
corporations amassed a total earnings of

Php144.4 billion or US$ 33.986 Million. While they
raked in prots, the Philippine government only
got Php 13.373.4 million in taxes and royalties.
The countrys mining sector is largely nonBy virtue of RA 7942, the government can only
unionized that could be attributed to major facget 2% excise tax from mining operations, while it
tors: employment of temporary, exible or conis giving the Philippine land and water for wholetractual vis--vis the regular workers and suppressale exploitation. Thus, the increase in mining
sive nature of labor relations. Lepanto Mining is
companies revenue could hardly create a positive
one the unionized companies, the union were
impact on the economy.
established in the 1980s-- that to a certain extent
able to weather the calculated union busting
In CARAGA region for example, where large scale
measures. Violations of right
to collective
mining operations have intenbargaining, compounded by
sied in the last four years,
series of illegal suspension,
poverty incidence continually
...one of the major push
dismissal of union ocers
increases. In 2009, it [poverty
forced the union to stage a
factors in poverty
incidence] was up to 39.6%
strike in 2007. The strike was
increase is the massive
from 36.9% in 2006. In the
supported by the entire comdisplacement
of
fishing
same year, 2009, two of its
munity and won. However,
provinces were included in the
and farming
more than 700 of its members
countrys poorest provinces,
were dismissed, forced to
communities and
with per capita poverty
retire only to be replaced by
subsequent loss of
threshold at 43.%, next to
low-paid contractual workers.
livelihood due to largeZamboanga del Norte,[19]
The union at Lepanto Mining
host to Toronto Ventures
scale mining operations
is aliated with NAFLU-KMU.
Inca Canadian gold mining
[17]
company
Unionism at Philsaga mining reects a new but
Apart from this measly income, one of the major
traditional way of suppressing independent unpush factors in poverty increase is the massive
ion. Last year, workers discontent over the prodisplacement of shing and farming communities
longed contractual employment and low wage
and subsequent loss of livelihood due to largeprompted them to organize union. The managescale mining operations. The destruction of land
ment learned of the initiative and to the workers
and mountains had caused massive ooding in
surprise, it endorsed and campaigned for PTGWO
areas, resulting to the decrease in rice and corn
TUCP (Philippine Transport and General Workers
production and halt in other economic activities
Organizations). Without union election, PTGWO
as roads became impassable. Residents narrated
was installed and a collective bargaining agreethat recent ash oods in Surigao ang Agusan
ment was signed in November last year. The
provinces that submerged several villages were
workers were never consulted of who they want
rst time, and the communities were not preas ocers and whats in the CBA. In examining
pared to deal with new situation. In addition, high
the economic provisions of the CBA, it is apparent
water siltation also deprives the sherfolks of
that even the so-called benets provided for the
their source of income.
agreement are even lower than what the legal
standards prescribe.[18]
The MGB regional Director Ensomo also admitted
Where there are large scale mining operations
poverty rate is also high
From 2009-2010, foreign and domestic mining
that the mining has not undercut the poverty in

the region, except that they cannot do much but
to encourage companies to engage in some social
responsibility activities such as building schools,
Part of the human chain opposing mining in Surigao, 28 April 2012 (Photo: CTUHR)
clinics etc. Whilst this may sound noble, this

amount to relinquishing government responsibilities for education, health etc. to TNCs charity that
bodes ill to giving the young people a patriotic,
pro-people and pro-environment education. As
TNCs provide them the schools, orientation and
employment to teachers, they become beholden
and loyal to the company rather than to their
country.
Large scale ecological destruction
Mining Act of 1995 declares
that all mineral resources in
public or private lands, including timber or forestlands as
dened in existing laws, shall
be open to mineral agreements or nancial or technical
assistance agreement applications.
A mineral agreement shall
grant to the contractor the
exclusive right to conduct
mining operations and to extract all mineral resources
10
found in the contract area. Permit given to large

scale mining companies is 25 years and could be
extended to 50 years.[20]
Thus the laws implementation takes heavy toll on
the environment. The nickel strip mining in Surigao del Norte for instance have destroyed not
only the `iron mountains but have polluted the
water that for century have been the source of
livelihood in the area.
In areas, visited by the ISMM, residents testied

that ve years ago, the area
being stripped by TMC
(Taganito Mines) in Claver,
The strike was
Surigao del Norte used to be a
mountain, but now it was a
supported by the entire
at deserted land.
community and won.

However, more than
700 of its members
were dismissed, forced
to retire only to be
replaced by low-paid
contractual workers
It is certain that if the manner

by which large scale mining
operations are conducted the
way it is done today, the
mountains of those provinces
will become at deserted
place, its surrounding bay polluted up to several kilometers
of siltation in less than 10

years from now.
Struggle and resistance
Thus it is imperative
that before further
havoc is created, the
Mining Act of 1995
has to be repealed,
now
Extractive large scale mining

operations are not happening
unopposed. Progressive environment groups and some
local government ocials
continually called for the repeal of the Mining Act of
1995. Temporarily, they called
for a moratorium of large scale extractive mining
operations in the country until a clearer policy
and downstream industry is put in placed. The
powerful Catholic Church called for a total ban to
mining. The human chain led by the Church and
the local government in Cantillan, Surigao del
Norte proves that the community will not take
things sitting down.
The International Solidarity mission on Mining
(ISMM) also condemned the appalling condition
of mine workers and the massive destruction of
the environment. It also supported the call for
moratorium od the current large scale extractive
mining operations until such time that the technology to develop downstream industry is available.
At the Philippine House of Representatives,
Bayan Muna Partylist Representatives together
with Anakbayan, Anakpawis, ACT, and Gabriela
Womens Partylists have led what they called as
Peoples Mining Bill. The Bill recognizes the importance of mining as a foundation of growth,
but it needs to be placed into the core of the
countrys national industrialization plan.
The bill merits all possible support and mining as

in the experiences in other countries can spur
industrialization given the correct policy framework and program. The Mining Act of 1995 can in
no way deliver the benets that mining can possibly deliver to the Philippines. Its ill-eects are already proven. Neither the so-called Executive
Order that President Aquino will issue to clarify
policies, as it only focuses on raising government
revenues without addressing the larger concerns.
Thus it is imperative that before further havoc is
created, the Mining Act of

1995 has to be repealed, now.
The trade union movement in
the country has denitely important role to play not only
to address the workers organizing in the industry or in protecting their rights and welfare but to enable them to
participate in crafting a people-oriented mining policy and
laws. *
Endnotes
1) Aquino wants to impose higher taxes on mining industry Philippine Online Chronicles, 21 Mar 12
2) Mines and Geosciences Bureau (MGB) as published
in Mining in CARAGA, CARAGA Mining Situation under
the Aquino Administration, CARAGA WATCH, updated
April 2012
3) Gold not giving much glitter to economic, job
growth, Manila Times online, April 12,2012
4) Mineral Industry Statistics, Mines and Geosciences
Bureau (MGB), Department of Environment and Natural Resources (DENR), 16 April 2012
5) Aquino governments Philippine Development Plan
2011-2016, August 2010
6) Philippine Labor and Employment Plan 2011-2016,
Department of Labor and Employment, August 2010
7) Section 26 of Republic Act 7942 or Mining Act of
1995 denes Mineral production sharing agreement
(MPSA) - as an agreement where the Government
grants to the contractor the exclusive right to conduct
mining operations within a contract area and shares in
the gross output. The contractor shall provide the nancing, technology, management and personnel necessary for the implementation of this agreement.
8) Mineral Industry Statistics, Mines and Geosciences
Bureau (MGB), Department of Environment and Natural Resources (DENR), 16 April 2012
9) Mining investments sharply lower The Philippine
Star, 07 May 2012
10) Labor Force Survey Philippines 2010-2011, Bureau
of Labor Employment Statistics, Department of Labor
and Employment, January 2012
11) Gold-not-giving-much-glitter-to economic-jobs-
11
growth - http://www.manilatimes.net/index.php/
business/top-business-news/2084612) 012 Philippine Mining Situation, Intensied Plunder,
Intensied struggles Center for Environment Concerns,
Philippines,
13) The International Solidarity Mission on Mining
(ISMM) was organized by the Metalworkers Alliance of
the Philippines (MWAP), Center for Trade Union and
Human Rights (CTUHR), Kilusang Mayo Uno (KMU),
Crispin Beltran Resource Center (CBBRC), Integrated
Philippine Electronics Network (iPEN) and Institute for
Occupational Health, Safety and Development
(IOHSAD), This was participated by 11 foreign delegates
from Australia, Belgium, South Korea, Germany, Japan
and the United States. ISMM visited CARAGA in Mindanao and Benguet in Cordillera Region.
15) Labor Force Survey Philippines 2010-2011, Bureau of

Labor Employment Statistics, Department of Labor and
Employment, January 2012
16) ISMM interview with workers and key informants,
28 April 2012
17) CTUHR Documentation, 2006- 2008
18) ISMM interview
19) Poverty Incidence (Population) 2006-2009, National
Statistical and Coordination Board
20) Section 18 and 26, RA 7942, :An Act Instituting A
New System Of Mineral Resources Exploration, Development, Utilization And Conservation, 03 March 1995
14) ISMM interview with Mr Alelo Ensomo, CARAGA

Director of Mines and Geosciences Bureau, Surigao del
Norte, April 26,2012
12
Feature
Mining Sector and its Future in India

Ramamurthi Sreedhar
Introduction
India is endowed with huge resources of many
metallic and non-metallic minerals. Since independence in 1947, there has been a rapid growth
in the mineral production both in terms of quantity and value. Currently, India produces as many as
87 minerals, which include 4 fuels, 10 metallic, 47
non-metallic, 3 atomic and 23 minor minerals
(including building and other materials).
The mining activities are extremely poorly regulated despite the fact that as early as 1948, the
founding fathers of the constitution realized this
need. During the Constitutional debates, they
said as early as in 1948, Industrialisation has
brought in its wake an ever-increasing demand
for mineral resources. These resources are nonreplenishable and mostly scarce. Proper control
over regulation and development of mines and
minerals is therefore, a matter of national con-
cern. Today over 80,000 mines operate illegally

as against nearly 10,000 legitimate leases. Only a
third of the legal mines actually report to the Indian Bureau of Mines, the regulator.
Within two decades of liberalised economy, much
in contrast with the Constitutional objectives,
mining as a sector has come to be associated
with scams, conicts, violence and ecological
degradation.
A Quick Overview
Mining of major minerals was a forte of the Public

Sector Undertakings until the nineties when the
country embarked on the economic policy of privatization and globalization. New ways are being
devised for exploitation of the resources and to
hand over wealth of the nation for small shortterm gains. The rapidity with which the global
interests want to usurp these resources is reected to the stock
markets and it is
with an exponential rate that mining is devouring
lands and livelihoods of many
communities. In
the case of coal,
the private sector
was a key player
until it was nationalized in the seventies again to be
opened up in the
last decade and as
of today nearly
twenty per cent of
the known coal
reserves of the
In Sandur, most of the water sources are contamininated with iron ore dust and no one has access to clean
country have been
drinking water. (Photo: mines, minerals & PEOPLE)
13
handed over to the private sector. Most mineral

resources are co-terminus with Forests and Schedule Areas and mining has become a major source
of destruction of the environment and livelihoods
of the local communities and has reached alarming proportions. Some key facts:
1.
Mining has a low contribution to the economy. GDP from mining has never exceeded 5%
of the GDP even after liberalization. In comparison, small and medium enterprises contributed signicantly (29%), employing more
people and aecting less people.
2.
Out of the estimated or known coal reserves

of 267 billion tones, 48 billion tonnes, almost
one-fth are allocated to high networth companies in what is now being debated as the
biggest scam around natural resource allocation amounting to illegitimate corporate benets of over 40 Billion USD.
3.
Bauxite mines allotted to companies like ANRAK, NALCO, VEDANTA, and JINDAL could
last them for a century. Most of these mining
blocks are in the Schedule V areas which have
protection under the constitution and by Samata Judgment. The States have circumvented these protections by taking lease by state
corporations and entering into JVs with private companies.
terials.
6.
Occupational hazards in mining industry are

under reported, unreported and fail to recognize the huge costs at the society level. Underground coal mines result in 1 death for 2.5
mT of coal mines. A huge proportion of coal
mine workers suer from Coal Workers Pneumoconiosis (around 25% of coal workers).
Noise pollution (>90dB) is a huge neglected
aspect which is increasingly aecting workers
as the mines are mechanized and the protective gears do not respond to working conditions or are not appropriately suitable to conditions.
7.
The reclamation costs are being estimated at

least 4% of the coal production costs, areas
impacted by coal res is increasingly aecting
a large conglomerate of settlements. With the
introduction of coal bed methane i.e. emptying the last residues, the kind of water evacuation is likely to damage land at large scale.
Even at micro levels of processing and disposal there is 1 death per 5 mT of Coal input and
1.3 disabling injuries per mT.
8.
Villages in the mining regions are getting devoid of drinking water due to increased competitive use of water by industry and mining.
It is not mining alone, once we see the downstream industry we realize that huge quantum
of water is being gulped by the industry e.g.
it is estimated that this water can serve 300
million populations. On the other hand, the
slippages in rural drinking water supply are
huge i.e. the overall quantity and quality problem is glaring. 42% of households in villages of
India
have no electricity where as the
industry is consuming the major
share of electricity.
4.
Mining in several blocks will only begin 5 decades from the date of clearance which is a
clear indication of sacricing resources in onego and also negating the chance of communities to assert their rights.
5.
The input of resources into production stream

is huge e.g. inputs for 1000
kg primary aluminium production requires >5000 kg
Occupational hazards
of bauxite ore, 13,000 litres
in mining industry are
of fresh water, 27500 litres
under reported,
of sea water, 15,711 kWh of
electricity consumption. It
unreported and fail to
clearly depicts that mining
recognize the huge
of a mineral is not limited to
costs at the society
the mineral alone, it is highly
level
intensied resource use of
other resources or raw ma-
14
9. With heavy mechanization,

the labour or employment is
decreasing whereas in small
scale mining labour norms are
outed both in terms of remuneration as well as provision of
facilities.
The impacts are widespread and
bling its current size within the next 15 years. The

irony is while the mining
is being promoted, there
is no polluters pay principle in practice which is
building a huge cost towards environment. The
regulatory regime is in
place but these are again
skewed by executive decisions to promote investments. Moreover monitoring is not eective
thus leading to lowest
compliance.
Government of Indias
Priority and Our Con
cerns
Girl from a stone quarry , she works with her disabled hand. (Photo: mines, minerals & PEOPLE)
diverse, and have created socio-economic and

cultural impacts over dierent geographies and
ecosystems from the Western Ghats which is an
UNESCO Heritage Site and a Global Biodiversity
Hotspot to Stone Quarries of Rajasthan where
silicosis is a blight on a huge population still
emerging from the cover of denial by the government, and from coal mines in Meghalaya leading
to Acid Mine Drainage to beach sands in Kerala
causing cancer from radiation. Even constitutionally protected tribal areas Scheduled Areas,
(Schedule V and VI), where a large proportion of
the mineral wealth of the country rests, have not
been spared of this onslaught.
The current trend is to promote more mining and
a complex set of factors external as well as internal are driving more investments. India opened up
its FDI in mining without any bottlenecks for the
investors in 1991. The policies initially aided the
State and later, the corporates, as promoter of
economic growth and private protability by rapidly abstracting mineral wealth of the country.
Various actors have invested into the sector, including national and international companies,
banks, equity funds, and also round-tripping of
illegal funds etc. It is now predicted to almost dou-
The National Mineral Policy of 2008 banks upon

inviting high investments
into the mining sector and has promised of a Sustainable Mining Framework. Although there has
been mention about impact on people, land acquisition and compensation, it is hugely oriented at
looking mining as an economic opportunity. This is
reected in the new bill, through which a single
mining lease could be as large as 100 km2; renewal
of leases is being replaced by extension bequeathing it till the deposit lasts which will make miners
squat for long; there is a growing dilution of provisions which favours ownership to communities to
only prot sharing that too through a highly bureaucratic setup.
The push is to change government policies and
make them favourable to industry, thus the mining companies and the State are equally alienated
from the host communities. The nancial transactions are very opaque, with investments banks
which are large in number channelizing funds
which is dicult to track. The whole issue of capital mobility and its role in expanding mining is still
poorly understood.
Ecosystems are getting disturbed beyond their
resilience, like the river ecosystem is getting hugely aected, so is the wildlife corridors. The interre-
15
The slow pace of Foreign Direct Investments (FDI)

in the mining sector even ve years after the liberalization of the investment regime, the lack of
enthusiasm for investment in prospecting shown
by the domestic private sector, and the lack of
resources with public sector agencies meant that
the sector was unable to signicantly contribute
to growth. During the Mid-term Appraisal of the
10th Plan in the Planning Commission, it was observed that the 1993 policy had not been able to
achieve the aim of encouraging the ow of private
By and large in the mining operation and investinvestment and introduction of high end technoloment world, the key beneciaries are investors,
gy for exploration and mining because of procebanks, owners, politicians and contractors, condural delays, etc. A need for review of NMP, 1993
sultants and reclaimers. The cost is being paid by
with a High Level Committee on National Mineral
local communities, workers, environment, ecosysto review the situation led to the National Mineral
tem and small investors.
Policy (NMP), 2008, which confers lot more concessions to investors while also expressing the
The rst Industrial Policy Resolution adopted in
need for environmental and social safeguards. A
1948 codied the national
policy in respect
new Bill, the Mines Minerals
of mines and minerals. MinDevelopment and Regulaing sector also received due
Mining is one of the most
tion Act 2011 has been introattention in the second
environmentally
and
socially
duced in the Parliament and
'Industrial Policy Stateis currently under the scrutidestructive economic activity.
ment' issued in 1956. As a
ny of the Parliamentary
It has a low contribution to
follow-up measure to IndusStanding Committee.
trial Policy Resolution of
the GDP but the conflict it
lationship between governance of a welfare state
and mining is marred by huge gaps and strange
complicated structures. The glaring anachronism
in terms of neglect of mapping human, botanical,
zoological and atmospheric resources is huge; the
result of which is these overlying resources are
not accounted and treated as overburden by companies and government. Thereby the whole process is damaging the huge potential of community
and undermining the wealth of the ecosystem.
1956, the Mines Minerals

engenders is enormous and
The provisions regarding
Regulation and Developwidespread
working conditions and
ment Act 1948 (MMRD)
workers are covered by the
was repealed and MMRD
Mines Act 1951 which is also
Act 1957 was enacted. Unbeing reviewed. Surveys conducted in few selectder this Act the Mineral Concession Rules 1960
ed mines recently by Directorate General of Mines
and the Mineral Conservation and Development
Safety show that a signicant number of persons
Rules 1958 (MCDR) were issued. The new Industriemployed in the mines are suering from occupaal policy in 1991 oriented towards market liberalitional diseases including Silicosis, Coal Workers
sation.
Pneumoconiosis, Noise Induced Hearing Loss, etc.
The National Mineral Policy 1993 was an exercise
to keep the mineral sector tuned to the restructuring measures adopted in the trade and scal sectors. The new Mineral Policy declared in March
1993, has made a radical departure from the earlier policies by throwing open the mineral sector to
private companies and by allowing equity participation by foreign companies in joint venture in
mining promoted by Indian Companies. Further
Amendments in MMRD Act, 1957 in 1999 was
brought in to reect the changed emphasis on
development rather than regulation and was
amended to MMDR Act.
16
Because of the acute shortage of Occupational

Health Inspectors, a complete picture of the occupational health status in mines is not available.
Moreover, the persons employed in mines are
exposed to number of hazards at workplace
which adversely aect their health. Some of the
important ones are dust, noise, vibrations, heat,
humidity etc.
The long-term programmes in every sector of the
economy in India are still governed by and large by
the Plan Programmes. Occupational Safety and
Health at workplaces has been declared a priority
area for formulation of activities in the XII ve

year plan, the Planning Commission had set up a
Working Group on Occupational Safety and Health
(OSH) under the chairmanship of Secretary, Ministry of Labour and Employment. The report concludes on the existing situation In spite of many
initiatives, the standards of safety in mines have
not yet reached to a worldwide accepted norm of
Zero Harm at Workplace. Further, there are periodic occurrences of disasters in coal mines.
This calls for fresh initiatives with use of modern
technologies and tools, scientic data acquisition,
analysis and formulation of action plans on each
identied thrust areas, proper implementation
and eective monitoring of results. In the area of
statutory enforcement, result based inspections
and enquiries, compliance tracking system and online monitoring of processes are proposed to be
undertaken through various plan schemes proposed during the XII Five Year Plan.
However all these so called measures being taken
up as a priority will not be having much implications until the Mines Act is made more stringent
and companies and government agencies are held
accountable.
Towards a Way Ahead
Mining is one of the most environmentally and
socially destructive economic activity. It has a low
contribution to the GDP but the conict it engen-
ders is enormous and widespread. Our country

today has the dubious distinction of having illegal
mines signicantly outnumbering the legal mines.
A new Mines Mineral Development and Regulation Act is on the anvil and it calls for far reaching
reforms in the mining sector. The future should
usher in an era of Mineral Development with development as the focus rather than the current
attitude of exploiting minerals for mere prot.
The key emphasis has to be on
1. Rationalising and regularization of the on-going
mining activities on a war footing;
The unacceptable situation of illegal mining must
be put to an end. Irrational exploitation of diering grades of ores for short term gains has to be
restrained. Illegal mining of minor-minerals particularly of river-bed across the country have been
destroying the river systems and needs urgent
attention. This calls for a total moratorium on new
leases and ensuring zero-tolerance.
2. Increasing investments on exploration of all resources and have a detailed map before embarking
on deeper exploration and even in that process especially through non-invasive technologies and augmenting the reserves both on-land and within our
exclusive economic zone in the oceans;
Exploration investment in the country is abysmally
low and does not even constitute two per cent of
the global exploration
investments and needs
to be raised signicantly.
There are very little resources going into developing new exploration
methods. While our EEZ
extends to 200 km from
the coast, current investments are restricted only
to search for oil and gas
and disturbing the near
shore environment.
Children working at an iron-ore mine site in Sandur. (Photo: mines, minerals & PEOPLE)
3. Enhancing the eciency of the mining activities

and generating more resources from brown-
17
eld expansion rather than opening up new

green-eld areas;
Small pocket deposits in forested regions are being opened up creating patchiness and larger impact on the forest corridors while eciency improvements and expansion of existing deposits
are being neglected. This has to be a high priority.
4. Enabling and emphasizing on local value addition
and restricting export of minerals;
Though every state government talks about value
addition, in the name of lack of technology or that
mining is a stand-alone industry important minerals are being exported with very little benet to
the state or the communities. Value addition must
be the norm rather than as an exception.
5. Developing a widespread understanding of the
strategic value of dierent minerals and ensuring
conservation of requisite quantities of such minerals;
The strategic value of various minerals must be
recognized and specic eorts must be made to
conserve minerals essential for the countrys future. Minerals such as bauxite, titanium, several
heavy metals which will be crucial for future development of materials need to be assessed for our
long term needs rather than for prots to corporates in the current period.
6. Ensuring strict compliance of all the environmental, social and labour laws governing mining activities and several environmental, social and labour
laws are constantly violated in several mining contexts.
The laws should be made convergent with proper
oversight authorities. The blight of occupational
diseases such as asbestosis and silicosis must be
eliminated.
7. Enabling evolution of economic opportunities not
dependent on mining.
form the key consideration in the development of

minerals. It is important to recognize that mineral
bearing areas do not suer from the classic situation of resource curse which is seen across the
globe. In order to do this eort must be made to
identify economic opportunities which are not
dependent on mining.
A Reection
We recognize that the minerals will be ours forever if we restrain mining but the wealth of the soil
and other biota will be lost forever if we mine the
minerals below them. Mechanisms like paying the
Net Present Value as compensation do not reect
the true long term value of the ecosystem services
which the terrain and the plant and animal resources provide. The future must make these important elements in the design.
These are issues that several organisations, networks and alliances be it mm&P in India, JATAM in
Indonesia and AIMES in Africa, ATNC, ANREOV,
JSAPMMD, NGO Forum on ADB, MAC and several
other groups in Latin America are grappling with
and confronting as realities. There are varied
strong protests in the entire life-cycle where alliances have had a positive presence. We are
against Greeneld mining, we want the existing
mines to work as per rules and regulations and we
want mine-closure to happen properly including
the rehabilitation of the workers. We want our
countries to move away from an economy dependent on mining in the short run.
The real change has to be in the development paradigm. We need greater information exchange
and relationships with the communities to evolve
this new paradigm. Otherwise we will run the risk
of ending up only in targeting governments and
investors and institutions jointly, delay the activities and denigrate their behaviour and denitely
seek justice to the specic communities and yet
feel inadequate. It is indeed a long way to go for
the transformation we are seeking!
The long term consequences of climate change

and strategic future mineral availability should
18
The Case of Freeport Mc-Morran Copper & Gold Inc.

in Indonesias Extractive Industry
Abu Mufakhir
Introduction
Extractive industry is a strategic sector for supplying raw materials for other industries. There is no
modern economy can operate without any access
to adequate, aordable, and safe raw materials
produced by extractive industries. In general
there are four characteristics of the extractive
industry that distinguish it from other industrial
sectors: (1) Extractive Industry processes nonrenewable raw materials, therefore the raw materials in the industry are reduced and limited; (2)
extractive industry has a bound with production
sites with its local and specic nature right in the
places where raw materials are available; this
drives competition to get locations are potential
with limitless raw material resources; (3) extractive industry is both capital-intensive and technology-intensive sector, therefore only companies
with substantial nancial support can operate; (4)
extractive industry has more horrible ecologically
destructive force than other industrial sectors. For
example, Newmont Oil Company in Bima district
in the eastern part of Indonesia, produces 140,000
tonnes of waste per day, means 21 times the daily
solid waste of Jakarta city. These four characteristics are enforcing dierent development of extractive industry from the industries of other sectors.
in the context of relation between the state and

the massive expansion of transnational corporations (TNCs) in order to obtain raw materials for
prot, where TNCs do land-grabbing and natural
resources by using the imperative power of the
state, either through the establishment of regulation, as well as the mobilization of the stateowned violence means. In the accumulation of
extraction industries, the land-grabbing to get raw
materials resources currently is an inherent and
dialectical process. The case of Freeport McMorran Copper & Gold Inc will be elaborated as a
case study.
General Overview of Extractive Industry in Indo
nesia
Since it has raw materials resources, the government considered the extractive sector as the most
strategic sector to earn foreign exchange. In that
context, the Government implemented a policy of
export-oriented economy and provided discretion
for foreign capital. For example, of the total copper production in 2002, 1.17 million tons or 78 per
cent was exported, just as to the gold, from the
production of 142.2 thousand kg, as much as 73
per cent was exported.[1] Indonesia had become
the largest tin exporter that supplied 40 per cent
of the world's tin[2]. In 2011, Indonesia produced
290,000 tonnes of coal, 72 per cent for export
market.[3] In 2011, when Indonesia's export grew
This article attempts to describe the reality of ex13.6 per cent - it is beyond its historical average
tractive industries in Indonesia under the control
rate of 7.5 per cent. Mining
and domination of transnasector had been counted for
tional corporations, that
Indonesias high exports,
making wealth in an unimagiSeventy
five
per
cent
particularly coal, while the
nable amount from a mining
manufacturing, textiles, and
hotspot where the majority
of the mining sector,
agricultural sectors had relaof the population are in povparticularly oil and
tively slowed down and exerty, experiencing various
perienced a decline.[4]
gas, is controlled by
kinds of land-grabbing, eviction from their communal
land, and the workers earn
low wages with poor working conditions. The article
puts the extractive industry
foreign capital
Like many other natural

sources-rich countries, Indonesia extractive industry is
also under the control of
19
foreign capital. For example, 85.4 per

cent of the 137 management concessions over oil and gas elds in Indonesia owned by foreign multinational
companies.[5] No less than 10 transnational oil companies are operating
in Indonesia, such as Caltex, Exxon,
Petrocina, with the production
reached 921.487 barrels per day in
2004. Seventy ve percent of the
mining sector, particularly oil and
gas, is controlled by foreign capital.
[6]
Recent Mining Permits issued by Regions and Cities
Province
South Sumatra
Number of
Mining Per
mit*
189
Number of
Contract in
Oil and Gas
Mining
29
Poverty
(percentage)**
Urban
Rural
16.73
14.67
Bangka Belitung
303
4.39
8.45
East java
209
24
10.58
19.74
East Kalimantan
788
25
4.02
13.66
South Kalimantan
261
4.54
5.69
Aceh
75
14.65
23.54
East Nusa
Tenggara
Papua
56
13.57
25.10
22
5.55
46.02
*According to Directorate General of Oil and Gas, Ministry of Mines and

The situation was started from the
Energy, 2011
destruction of Soekarno era, with
** Central Bureau of Statistics 2011
their guided economic policy
Source: JATAM
throughout 1958-1965, during which
time the state conducted interference toward the
which was given only to Freeport.[7]
market and destroyed the dominance of foreign
capital. Soehartos authoritarian regime that was
When Soeharto regime toppled down in 1998,
commenced in blood, has initiated the return of
there has been decentralization with the implemore aggressive capital expansion up into the
mentation of the Law No. 32 year 2004 on Regionremotes of Indonesia for the second time after
al Autonomy (Otonomi Daerah). The goal was to
the colonial period. During the Soeharto regime,
reduce the authority centralized in Jakarta, and to
there are at least three Acts passed soon after
distribute it to the regions. Yet, in fact, what hapone-year of ruling: Law No. 1 year 1967 concerning
pened was the distribution of power in the hands
Foreign Investment, Law No. 11 year 1967 on Basic
of oligarchs at the local level. Law No. 32/2004 on
Provisions of Mining, and Law No. 5 year 1967 on
Regional Autonomy, Article 13 provided
Basic Provisions of Forestry. These three laws got
optional authority to the local government torid of all the policies produced by Soekarnos era
ward the management of mineral and coal mining.
that hindered foreign capitals. Since then, the
This was later conrmed by the issue of Mining
management of extractive industries was being
Regulations year 2008, which provides discretion
regulated (freed from any form of state intervento local authorities to issue Mining Authority. It
tion that inhibiting) so that foreign capital has
triggered the grabbing of raw material resources
exclusive access to land and the raw material rein the outposts become increasingly disclosed.
sources, through a mechanism called the
This condition continued with the enactment of
"Contract of Work.
Law No. 4/2009 on Mineral and Coal Mining that
made the Law No. 11 year 1967
At the same year of the passdid not apply. The presence of
ing of the three laws, the Gold
Mineral and Coal Mining Law,
...at least 60 people killed
Mining Company, Freeport
to honour the previous conby violent state-forces, in
Indonesia received a
tract, did not at all encourage
addition to 148 people
"Contract of Work" as a li(even just) renegotiation of
cense to operate and start
imprisoned and put in
contract compiled during the
their exploration in Papua.
trials with various
Soeharto regime. It was in
The Agreement between the
allegations of having
contrary emphasizing that the
Government of Indonesia and
contract made in the Soeharto
disturbed the mining
PT Freeport-was called 'First
regime should be applied until
investment
Generation Contract of Work
the contract was completed.
20
Law on Mineral and Coal Mining only changed the

regulation of Mining Authority into Mining Permit
that expanded the authority (based on the regional scale) to local governments.[8]
Freeport Indonesia (hereafter Freeport) is a gold

mining company with the most massive land concessions. Since 1991, through the extension of second contract, beneted with the area concession
of 2.6 million hectares, Freeport had expelled people from their land. One of the indigenous communities around the Freeport area was Amungme
Tribe, whose almost entire region has now become Freeports concession area.[11]
As a result, after the legalization of the Mineral

and Coal Mining Law, thousands of Mining Permit
issued by local governments. In 2011 there were
about 9,000 permits issued by the regions and
cities. That means, from about 30 regions and citCurrently, a total of 22 thousand people working
ies that had the potential of mining, they had isin Freeport, 98 per cent are citizens of Indonesia
sued about 300 permits in average.[9] At least
and 28 per cent of Papua. Workers in the operatevery day 6 to 7 mining permits were issued since
ing divisions work at an alti2008, and there were 5,171
tude of 4,600 meters above
permits from 8,263 categories
sea level with weather swings
of Clean & Clear based on the
Despite Freeport's
between high rainfall and exMineral and Coal Mining Law.
Grasberg mine in West
treme cold. They worked for
[10]
an average of 12-14 hours per
Papua has the only
The integration of Indonesia's
day. This excluded the threat
largest gold reserves in
economy into global market,
such as mysterious shooting
the world, Papua
as well as the decentralization
terror. Meanwhile local workpolicy in terms of the distriburemains the poorest
ers and Papuan were discrimition of power to facilitate businated in terms of wages and
province in Indonesia,
ness groups allied with local
facilities from expatriates. In
with the highest risk of
oligarchy to ease the deprivaparticular, Papuan are often
illness and death, and
tion of natural resources, are
employed in indecent and
the characteristic of current
most violence by
disrespectful divisions, such as
extractive industry. Behind the
sweeping street and aviation
military throughout the
extractive industry, since the
eld, with their almost nothcountry
enactment of Law No. 11/1967
ing payment of Rp 40,- (USD
and then replaced the Law No.
0,004) per hour or sometimes
4/2009, JATAM recorded that
was just paid with grocery items such as corned
at least 60 people killed by violent state-forces, in
beef, cigarettes, and tobacco.
addition to 148 people imprisoned and put in trials
with various reasons and allegations of having
Since 1967 to 2010, Freeport has produced 7.3 mildisturbed the mining investment. Many examples
lion tons of copper and 724.7 million tons of gold.
of cases on how corporations in extractive indusAs of per 2011, their ore reserves of 2.6 billion tons
tries commit land-grabbing, eviction of indigenous
in total. Roughly speaking, these reserves can propeoples, environmental degradation, as well as
duce 2.418 tons of gold. If the gold price is Rp 550
implementing low wages. Among these cases, I
thousand per gram, the total value of the reserves
will elaborate the case of Freeport Indonesia, a
is Rp 1329 trillion, almost equivalent to the amount
subsidiary of Freeport-McMoran Copper & Gold
of 2012 national budget of Rp1.435 trillion. The
Inc. (FCX), called as the pioneer of foreign investprot of Freeport Indonesia has contributed 50.75
ment by Soeharto.
per cent of total revenues of its parent company,
Freeport McMoran Copper & Gold Inc. (FCX). FCX
FreeportMcMoran Copper & Gold Inc: The Ulti
is the largest shareholder of Freeport Indonesia
mate Killer of Local People
(81.28 per cent), other shares owned by PT Indocopper of 9.36 per cent, and by the Government
Freeport-McMoran Copper & Gold Inc has a subof Indonesia of 9.36 per cent.
sidiary in Indonesia to operate in the country.
21
Despite Freeport's Grasberg mine in West Papua

has the only largest gold reserves in the world and
the largest copper deposits ever discovered13, it
has nothing to do with the improvement of Papuans welfare. Papua remains the poorest province
in Indonesia, with the highest risk of illness and
death, and most violence by military throughout
the country. According to the BPS (Statistics Central Bureau), the population of Papua that was at
the poverty line reached 944.79 thousand people
in 2010, while the number of unemployment increased from 53.6 thousand in August 2010 to
60.5 thousand people, with open unemployment
of 3.94 per cent in August 2011 from 1.17 million of
labour force. The poverty rate in Papua is also far
exceeded the national average of 13.33 per cent.
of Papua Police completed with the Barracudas.

The police argued that what done by Freeport
workers was not on strike but protests and
demonstrations, which not allowed to be done at
the national vital objects, and Freeport is a vital
national object.
The strike was triggered by the rejection of negotiations by the management due to the dualism
occurred in the union leadership. In addition to
refusing to negotiate, the management unilaterally terminated members of union board, including
those who conducted negotiation. There the union led a change in the concept of remuneration
taking into account the working conditions, years
of service and corporate prots. Initially, the union (PUK SPSI) proposed the remuneration packDuring 42 years of operation, Freeport has
age for level 1 to Level 3 by 35 dollars per hour spawned enormous ecological damage. Free200 dollars per hour, then fell to 17.5 dollars per
port's daily mining operations dispose 230,000
hour - 43 dollars per hour. Meanwhile, Freeport
tons of rock waste into Aghawagon River and
insisted the concept of percentage wage. The
rivers around. The acid rock
management oered an indrainage - or the disposal of
crease of 16 per cent, turned to
water containing acid- as much
22 per cent of basic payment. At
During the strike
as 360000-510000 tons per day
that time the wage of Freeport
there were 11
has ruined two valleys which
workers was only 1.50 s / d 3.50
include 4 miles (6.5 km) to a
dollars per hour, while the lowshooting with seven
depth of 300 meters. The Exploest wage of Freeport workers in
Freeport workers
ration of the Grasberg reserves
the world between 30-50 dollars
died, not to include
is estimated to produce 6 billion
per hour.
two
victims
from
tons of industrial waste.[12]
The strike continued for nearly
traditional mining
Freeport that has employed
six months, since the rst strike
more than 1000 security guards,
in the late June, and resumed in
through its status as a vital naSeptember and extended until
mid-January 2012, and recorded as the longest
tional asset, received protection of 700 police
labour strike and involved the largest mass in the
personnel, Mobile Brigade unit, and the military,
labour movement after Soeharto era. During the
even the special forces. Therefore, since 19982004, Freeport has expensed funding for the Poaction, a support from workers and non-workers
14
was getting greater in Papua. Participants of
lice / Army amounted to 20 million dollars.
Amount of money for security forces meals durstrike increased in number from 8 thousand to 12
ing 2001-2010, according to the Indonesia Corrupthousand of workers from total of 22 thousand
tion Watch (ICW), was amounting to 79.1 million
workers in Freeport. Supports also came from
dollars.
indigenous communities in Mimika regions, such
as Tribe of Amungme, Kamoro, Damal, Nduga,
The Struggle of Freeport Workers[13]
Dani, Moni and Ekari. Solidarity echoed even to
other countries. They questioned the wage disOn July 4, 2011, at least 8000 workers of Freeport
crimination and unfair work contract. While labor
Indonesia went on strike and faced by 349 heavily
organizations and non-governmental organizaarmed police personnel, together with 40 persontions in Jakarta, Mojokerto, East Java, and Yogyanel members of the Detachment B Mobile Brigade
22
karta took rallies to condemn Freeport union busting practice, some foreign trade unions, such as
the United Steelworkers,USA and the International Chemical Energy and Mining (ICEM), deplores
the response of Freeport and repression the state
apparatus in facing the strike. Occupy Phoenix
and the Industrial Workers of the World in America also take action against the criminal acts in
Freeport Indonesia.
On the grounds that Freeport is a vital national
asset, the strikes were then prevented by various
means. Mimika District Police, Papua charged the
strikers with criminal incitement, vandalism, theft,
and disturbing public interest. Pressure on the
strikers was also carried out by means of terror in
the form of mysterious shootings. KontraS recorded during the strike there were 11 shooting with
seven Freeport workers died, not to include two
victims from traditional mining area. Until today
the authorities failed to investigate the shooters.
The experience of Freeport workers in conducting
strike teaches that labour strikes should be wellprepared. Strike participants involve traditional
miners, contract-based workers as well as permanent workers. They also made alliance with trade
unions and non-governmental organizations outside Papua. Freeport Union also run a campaign
strategy, by audiencing with the House of Representatives, National Commission of Human Rights,
and even writing letter to the President. On the
eld, workers combined any forms of sabotage,
marches, blockades and work area occupation to
ght. Although, on December 14, 2011 reached an
agreement to increase the basic wage by 24 per
cent in the rst year and 13 per cent in the second
year, the value of the deal is far below the initial
demands.
Agenda for the Labour Movement
Expansion on extractive industry means a capital
geographical expansion on the land, since the
extractive industrial activity is the extraction of
dredged soil to obtain raw materials until no more
remaining selling value. Corporations in the extractive industries are even allowed to operate
within protected forests, allowed to evict migrant
peoples territories and territories cultivated by
indigenous peoples for generations, freed to violate human rights and commit environmental pol-
lution vividly, allowed to produce any kinds of

exploitation and cultural, social, and historical
damages as a part of its accumulation practices.
Extractive industry (read: capitalism) considers
land as commodity, so they tend to disregard social bound between the people and their land. The
Community release from their land is similar to the
release of social bound within them, which led to
the destruction of the life survival joints of the
community itself. In this case, the exploitation
victims of the extractive industry are community
that lost their living space.
On the other hand, the exploitation of waged labour, in the form of poor working conditions and
low wages happened. Both sides are the result of
capital accumulation. Bring forth spirit to ght,
which commonly divide social movements. Victimized communities ght against the destruction of
their living space, consider the mining as a matter
of themselves. That is why the mines must be
closed. Meanwhile, the labour movement that
represent the type of exploitation of waged labour, demand the mining companies to improve
the workers welfare. This is the same as demanding the mining to remain operating. In this context, trade unions need to nd organic relationship between the struggle for living space and
work space. When trade unions continued to limit
the issues in the work space, without engaged
against the damage of the living space caused by
work place, the trade unions then enter the eliteclass politic of devide et impera (divide and rule)
which creates horizontal conicts between the
work space versus living space, or even contributed to legitimize the exploitation of people's living
space around the workplace.
Endnotes
* I would like to thank JATAM (Jaringan Advokasi Tambang-Mining Advocacy Network), especially Siti Maimunah who has willingly discussed the practices behind
the extraction industry in Indonesia.
1) Salamudin Daeng, Penjajahan dari Lubang Tambang.
Temali Modal, Utang dan Pengerukan Kekayaan Tambang
Indonesia, Jakarta: Jatam, 2009, p. 10
2)Jatam, Executive Summary in Outlook 2012, Mining
in Indonesia. Mine and ATM/Dirt of Politics, forthcoming.
3) http://www.esdm.go.id/
4) Bank Indonesia, Annual Report. Available online:
http://www.bi.go.id/web/id/Publikasi/Laporan+Tahunan/
23
Laporan+Perekonomian+Indonesia/lpi_2011.htm Accessed on May 16 2012.

5) Salamudin Daeng, p. 7
6) Ibid
7) Ibid, p. 26
8) In the Stipulation No 23 year 2010, a derivative of
the Mineral and Coal Mining Law, the administration of
IUP rocks carried based on the regions
application. Application of the regions is any business
enterprise, cooperative or an individual who wants to
have IUP must submit a request to
the minister, governor or regent / mayor in accordance to their authorites. The divisions
of authorities are: Minister of Energy, for area application across-province or marine-territory of more than
12 miles of shoreline; governor, for area application located across the region/ city in a provincial or mar
ine territory of 4 to 12 miles ; regents / mayors, for area
application within region/ city or marine territory up to
4 miles. In a maximum of 10 working days after the
24
application received, ministers, governors, or regents / mayor must give a decision to accept or reject the request for WIUP. Sources: Stipulation (PP) No
23 year 2010.
9) Majalah Tambang, available online: http://
m.majalahtambang.com/detail_berita.php?
category=18&newsnr=5227
10) Jatam, loc.cit.
11) Amiruddin and Aderito Jesus de Soares, Perjuangan
Amungme. Freeport dan Militer (The Struggle of
Amungme Tribes: Freeport and Military), Jakarta:
Elsam, 2003
12) Al Jazeera, available online: http://
www.aljazeera.com/indepth/
opinion/2011/08/2011823133628702154.html, accessed on
17 May 2012.
13) This part is summarised from LIPS, Annual Labour
Update (2011), in Sedane Labour Journal, Vol 12, No 2,
2011.
Trans-National Corporations in Extractive Industry and

the Struggle Against them: The Case of Malaysia
Charles Hector
Rare Earth What is that? That would be the normal response by most people as rare earth, unlike
gold, tin, silver, copper and other popular metals is
not within common knowledge, let alone the fact
that it is used in are used in the manufacture of a
wide variety of products including Cathode ray
tube (CRT) and plasma televisions, computer monitors, IPod, MP3 Players, Hard Disc Drives, CDRoms and DVDs, automotive catalytic converter
and hybrid vehicles.
An Extraction Industry High Environmental Cost
and Health Risk
The extraction of rare earth was dubbed as being
one of mining's dirtiest industries whereby the
United States, who was once the world's largest
supplier, slowly moved away from it . This industry
has been blamed to have poisoned rivers with acid, and generates radioactive waste - an environmental cost that many would not be interested in
taking. Studies done in both New Jersey and China
shows that thorium radiation emitted during the
rening process and by plant waste can cause cancer, leukaemia, birth defects and chronic lung diseases.(Reuters, 19/3/2012, Pollution the big barrier
to freer trade in rare earths).
Today, China is the source of more than 90% of the
global demand, but things are changing and the
demand is increasing and prices have been going
up, and so environmental cost and health risks
now takes a back seat to prot. Better still, would
be a solution to transfer the environmental cost
and health risk to some third world nation, by
moving the extraction process and the storage of
the waste there.
Lynass Rare Earth Extraction Plant in Malaysia
and Public Opposition
This seems to have been what happened with
Lynas Corporation Limited, the Australian TNC,
who decided to ship rare earths ore from its mine
in Mount Weld to Malaysia, where it was to be

processed into highly sought after rare earths
metals at its facility in Gebeng Industrial Zone, in
Pahang, Malaysia. Lynas, however, states that the
reason for doing so is dierent better infrastructure and facilities.
Somehow, this plan and the construction of the
factory in Malaysia, did not receive public attention when it was being formulated, and partly to
blame would also be the mainstream media, that
is controlled and owned by persons or parties
close to political powers. The Malaysian government also saw it t not to highlight this plan, possibly knowing that it would result in public outcry
and protest especially so since Malaysians still remember Bukit Merah.
Plagued by the Bukit Merah case CleanUp Exer
cise Still Ongoing after Plant Closure in 1994
The Asian Rare Earth Sdn Bhd (ARE), whose shareholders included Mitsubishi Chemical Industries
Ltd (35%), Beh Minerals (35%), the state-owned
Pilgrims' Management Fund Board (LUTH) (20%)
and other businessmen (10%), began operation of
the rare earth extraction plant in 1982. Protests
continued, and nally in 1994 the closure of the
plant was announced. Within a few years, villagers began noticing physical defects in their newborns, and at least eight leukemia cases were conrmed. Medical examinations on children in the
area found that nearly 40% of them suered from
lymph node diseases, turbinate congestion and
recurrent rhinitis. Seven of the leukaemia victims
have since died. The decommissioning and decontamination exercise only started in 2003 and 2005,
and until today is still ongoing, and is estimated to
have cost almost RM300 million.
The memory of Bukit Merah, irrespective of
whether what is being extracted is dierent or
safety standards have improved would most likely
have resulted in public protest from the very be-
25
ginning. In any event, the protests did start and

are escalating. On 29/2/2012, over 8,000 persons
came out against the Lynas plant in Kuantan, and
recently on 28/4/2012 the anti-Lynas protestor
came out together with those calling for electoral
reforms, and the numbers across the country may
have exceeded 200,000.
defamatory article on its website on March 6,

while SMSL had published a defamatory article
dated March 22, on its blogsite. That defamatory
article dated March 22, is I believe a joint statement of 40 over Malaysian civil society groups to
the Malaysian Prime Minister imploring him to
immediately suspend the license issued to Lynas
and to stop any shipment of rare earth ore concentrate into Malaysia. Lynas is seeking general
damages and aggravated damages, costs and an
injunction restraining the defendants from further
publishing defamatory articles on Lynas. They are
also asking for an interim injunction to stop the
defendants from publishing defamatory statements or articles from now until the decision of
the trial.
What happened in the Fukushima Nuclear Power

Plant, following the Thoku earthquake and tsunami on 11 March 2011 also has do have an impact on
public perception and fears. No matter how perfect your buildings and safety measures are, the
possibility of accidents resulting in impact to environment and health maybe not today, but in the
future is very real. More so, when it involves
waste from a rare earth extraction facility, which
may also be radioactive. In these cases, the risks
The suits come at a time when the Malaysian govbecome very long term risks, and accidents may
ernment is considering whether the said factory be
happen after Lynas has left
permitted to operate or not. A
Malaysia and present governParliamentary Select Commitment is no more. Most people
tee on the Lynas project has
The risks become very
would rather take the better
been formed, and is now conlong term risks, and
be safe than sorry attitude.
ducting public hearings to lisaccidents may happen
ten to Malaysians, and, as
Silencing Human Rights De
such, Lynas attempt to gag its
after Lynas has left
fenders, Media and the public
critics is even more wrong.
Malaysia and present
an unacceptable reaction by
These suits are a gross infringegovernment is no more
a TNC to opposing views
ment of the rights of Malaysians, including the media, to
To possibly retaliate against
eectively participate in this
the protests, this Australian
process initiated by the govTransnational Company, involved in the extraction
ernment to get the views of people in Malaysia
industry, is now trying to use the courts. On
which will impact a nal decision of the Malaysian
19/4/2012, Lynas Corporation Limited and Lynas
government.
Malaysia Sdn Bhd led suits against the operator
of online news portal 'Free Malaysia Today' (FMT)
and the anti-Lynas group known as 'Save Malaysia,
Stop Lynas', over defamatory articles on Lynas.[1]
In the rst suit, Lynas Corporation of Sydney, Australia, and Lynas Malaysia named MToday News
Sdn Bhd as defendant, while in the second suit;
they named SMSL Sdn Bhd (Save Malaysia, Stop
Lynas) and its two directors, Tan Bun Teet and Lim
Sow Teow, as defendants. The rst suit is again a
free alternative online media, and the second is
against a civil society organization (CSO) and human rights defenders.
In the suit, Lynas claimed that FMT had published a
26
Using court actions and gag orders to suppress

opposition views by transnational corporations is
deplorable. It is a violation of ones freedom of
expression, freedom of opinion and freedom of
protest. It also goes against the UN Declaration on
Human Rights Defenders, and also UN Guiding
Principles for Business and Human Rights.
Rather than taking court actions, Lynas should
have just made a statement to counter the points
made. In fact, being a TNC, they also would have
the required resources of putting full page adverts
in national dailies to get their views across to the
public. What Lynas have done already have a nega-
tive impact on persons, and even groups, in Malaysia.

UN Declaration on Human Rights Defenders
It is time for TNCs to also study this declaration,
which is most clear about what a person is entitled
to do in the promotion of human rights. A sampling of some relevant quotes is as follows:
ation with others, against any violence, threats,

retaliation, de facto or de jure adverse discrimination, pressure or any other arbitrary action
as a consequence of his or her legitimate exercise of the rights referred to in the present Declaration.
In fact, this concern about retaliation against Human Rights Defenders is re-emphasized in the 2010
Resolution adopted by the Human Rights Council A/HRC/RES/13/13 entitled Protection of human
rights defenders.
Everyone has the right, individually and in

association with others freely to publish,
Now, Lynas and other TNCs, do have the right to
impart or disseminate to others views, infortake legal actions based on defamation and libel,
mation and knowledge...To study, discuss,
seek gag orders and even claim large sums of
form and hold opinions on the observance,
monies as damages. These
both in law and in pracsuits, after all, can turn out to
tice, of all human rights
be
an eective means of silencand fundamental freeMedical examinations on
ing
current critics, and may
doms and, through these
children in the area
even deter future opposition to
and other appropriate
found
that
nearly
40%
of
the rare earth plant.
means, to draw public
them suffered from
attention to those matThe commencement of a legal
lymph node diseases,
ters.
suit would naturally cause
turbinate congestion and

much stress, loss of time and
Everyone has the right,
resources and suering on hurecurrent rhinitis. Seven
individually and in associman rights defenders many of
of the leukaemia victims
ation with others, to
whom who did what they did
have eective access, on
have since died
not by reason of some selfa non discriminatory bainterest or nancial benet, but
sis, to participation in the
a genuine seless concern for
government of his or her
human rights in this case a
country and in the conduct of public aairs.
concern for the environment, health and wellThis includes, inter alia, the right, individually
being of the people in the immediate vicinity of
and in association with others, to submit to
the intended plant and/or storage facility of the
governmental bodies and agencies and organiwaste produced, and the people in Malaysia in
zations concerned with public aairs criticism
general.
and proposals for improving their functioning
and to draw attention to any aspect of their
So, TNCs need to consider whether they will be
work that may hinder or impede the promodriven by a commitment to the principles and valtion, protection and realization of human
ues of human rights and environmental concerns,
rights and fundamental freedoms.
or alternatively be just driven by pure business
The Declaration also shouts out against
retaliations, which in my opinion, what Lynas is
doing now through these legal suits clearly goes
against this principle in the Declaration.
The State shall take all necessary measures to
ensure the protection by the competent authorities of everyone, individually and in associ-
concerns of opportunities and prots. I hope

Lynas will do the right thing and immediately discontinue these legal suits, hence demonstrating a
commitment to human rights.
Is the Opposition to Lynas Baseless?
Well, for one there is the concern about the
waste, which even the Health Minister of Malaysia,
27
Datuk Seri Liow Tiong Lai, had once been reported saying that Lynas must nd a way to ship the
waste back to Australia, failing which no temporary operating licence (TOL) will be issued. Then,
we hear that the Western Australia Minister for
Mines and Petroleum Norman Moore told the
states legislative council that it would not allow
the residue, which Lynas says it can treat to reduce
its radioactivity, to be returned to its source. This
lends credence to the current concerns of Malaysians, especially those living near the proposed factory and/or dumpsite.
It must be noted that when it comes to protest
and objections raised by civil society, it will be a
folly to expect that it would be comprehensively
researched or analyzed. The perception, language
and resources available to ordinary people must
be considered. Lack of transparency and cooperation by corporations, governments and other bodies also is a factor. Further, there are always diering opinions and views.
lowed. Lynas, too being in the supply chains of

other companies and brands is obliged to adhere
to these Corporate Social Responsibility commitments.
OECD Guidelines for Multinational Enterprises
Australia is a member of the OECD, and such the
OECD Guidelines is relevant in this case. The guidelines clearly is for the respect of human rights including also freedom of expression, whereby,
amongst others, it is stated
Respect the internationally recognised human
rights of those aected by their activities
..Support, as appropriate to their circumstances, cooperative eorts in the appropriate fora
to promote Internet Freedom through respect
of freedom of expression, assembly and association online
and clearly the suing of an alternative online media, a civil society group and human rights defenders would be actions inconsistent with the spirit,
principles and content of this Guidelines.
Lynas should have resorted to responding to assertion with their counter-arguments, maybe
Use of Cyanide by Raub Australian Gold Mining
even publicly, rather than trying to silence dissentSdn Bhd (RAGM)
ing views and voices through court actions, where
Briey, we will look at another
an interim gag order until the
Australian TNC involved in gold
end of trial Is also being
extraction.
sought which, if they get,
The residents do not
would be most unjust.
know that this toxic was
About 500 villagers of Bukit
Koman gathered in March 2009
When Brands/Corporation
being used and we are
protesting the use of cyanide
That Have Lynas in their Sup
extremely upset that
by Raub Australian Gold Mining
ply Chain remain hidden and
the
company
has
been
Sdn Bhd (RAGM). The commusilent
allowed to use it in close
nity complained of foul smell
According to the Lynas websince mid-February and alleged
proximity to our
site,[2] rare earth is used for
that many villagers are falling
village
Cathode ray tube (CRT) and
sick. They believed the compaplasma televisions, computer
ny had started using cyanide in
monitors, IPod, MP3 Players,
its gold extraction.
Hard Disc Drives, CD-Roms and DVDs, automotive
The claim was that the residents were not aware
catalytic converter and hybrid vehicle, and this
of the project or that cyanide was being used in
means that many of the Electronic, Home Consumthe extraction process. The residents do not
er Appliances and Automotive brands and compaknow that this toxic was being used and we are
nies may have Lynas in their supply chain and as
extremely upset that the company has been alsuch, it is time that they do the needful to ensure
lowed to use it in close proximity to our village
their proclaimed commitment and obligation to
This is also a danger as the project is located near
human rights, and also the environment, which
the Sungai Koman river with the possibility that
generally also applies to their supply chain be fol-
28
the toxic may seep into the

waterwaysSince the project had commenced in February, the residents health
deteriorated due to the
eects of cyanide. They
were of the opinion that the
authorities should have consulted and briefed the residents on the potential health
risks involved [3]
Recent trends of
terminating workers and
union leaders who voiced
public criticisms about
their employer is also
disturbing, and helps
keep hidden worker
related issues from the
public eye
The Environment DirectorGeneral approved the PEIA

report on Jan 13, 1997. Via a
letter dated Feb 21, 2008, the DG declined to accede to the residents' request to review the preliminary environmental impact assessment (PEIA)
and require the company to provide a detailed
one. On March 21, 2008, four representatives of
the residents, led for leave to initiate a judicial
review proceeding naming the Environment Director-General and RAGMSB. On 1/6/2009, Kuala Lumpur High Court judge dismissed their application
on the grounds that the application was made out
of time. The Court of Appeal, on 2/8/2011 also dismissed the residents appeal, but the good news
is that on 11/1/2012, the Federal Court granted
them leave to appeal to the Federal Court. Now
we have to wait for the appeal to the Federal
Court.
Speed and Openness Are Essential When Dealing
With Environment & Public Health Concerns
Now, the serious concern here is the failure of the
Malaysian government to pro-actively and eectively bring to the notice of the residents information about the project, and also the possible
risk to the environment and public health, and the
proposed steps taken to reduce or eliminate these risk by the company.
They raised their concerns and complaints in
2008, and after more than 4 years the issue is still
in the courts. This process is just too slow and
ineective when it should have been speedily
done given the fact that peoples allegation is
about health risks and environmental impact arising by the activity of the company that is ongoing.
It is also disturbing that the

government also failed to act
on this speedily. The use of
technicalities, like being out of
time, to not re-visit government decisions or for courts
not to hear the case on its merits for a case like this is also
shocking.
A better response, in cases

where health risks and environmental impact is raised, would
have been for the government
to immediately issue a stopwork order and re-visit the case. It is also absurd
to use out of time arguments to avoid re-visiting
approvals given when naturally new issues, new
points, new arguments and/or new evidence can
crop up at any time and there must be procedure and/or mechanisms that enable the revisiting of permits/approvals granted or rejected
when this happens, for this is essential to ensure
not only that justice is done, but is also seen to be
done.
Extractive Industries Worker and Trade Union
Concerns
Generally, when it comes to TNCs involved in the
extractive industry, the concerns are with regard
to environmental issues, health risks to the surrounding community, and issues of land grabbing,
but let us not forget there is always an issue
about worker rights and welfare, and their families including also issues about occupation health
and safety. The changing trend from permanent
employment to short term employment and now
to merely using workers without direct employment relationship with the principal resulted in
the weakening of trade unions and worker collective bargaining powers, and this would also impede the disclosure of worker-related issues. Recent trends of terminating workers and union
leaders who voiced public criticisms about their
employer is also disturbing, and helps keep hidden worker related issues from the public eye.
These matters require a more elaborate discussion, which space does not permit here.
The Way Forward
29
Some believe that the way forward is through

having more Declarations, Conventions and Instruments addressing worker right and human
rights concerns at the level of the United Nations,
International Labour Organizations (ILO), ASEAN,
etc but alas the aw is that this are seldom binding on nation states, and many a good Conventions and instruments are never ratied or committed to by many nation states. At the end of the
day, what we really need is highlight real cases
and support workers and people in their struggle
for justice but then, this trend of TNCs suing
opponents is disturbing, and will eventually have
the eect of deterring opposition. This is some-
30
thing that needs to be addressed, for human

rights and worker rights is not just the concern of
victims, perpetrators and governments, but is a
concern of all justice loving human persons in our
global community.
Endnotes
1) New Straits Times, 2/5/2012, Lynas sues FMT, antiLynas group over articles
2) http://www.lynascorp.com/applicationList.asp?
category_id=1&page_id=7
3) Malaysiakini, 1/6/2009
Australian Mining Companies' Resistance

to Collective Bargaining
Michael Walker
Background
Due to its aridity, Australia remains one of the
worlds most sparsely-populated countries, with a
density of 2.8 people per square kilometre. The
result is that Australians - 0.3% of the worlds population today sit atop enormous reserves of natural resources, including 23% of the worlds known
uranium reserves and 13% of the worlds known
iron ore reserves. Moreover the countrys political
stability, advanced extractive processes and ease
of doing business make it attractive to buyers of
natural resources.
With all of this relative abundance, Australias mining industry sometimes appears to live in its own
universe.
Impact on the economy
Mining is super protable and has been for more
than a decade as a result of the enormous and
rapid increase in demand from China and other
developing Asian nations for iron ore and other
materials required for residential, industrial and
civil construction.
It is also located away from Australias major metropolitan areas, which are concentrated in the
south-eastern corner of the country. Most mining
operations take place in the states of Western
Australia and Queensland, which occupies the
north-eastern part of the continent.
As an economic activity, mining accounts for 5.6%
of GDP and just 2% of employment. However, because they are so protable, resources companies
account for 20% of stocks traded on the Australian
stock exchange, so they are receive disproportionate attention.
Over the last 10 years, Australias productivity has
actually been in slight decline. This has been hidden to some extent because the protability of
mining is so great that it tips the national account

gures into positive territory. The countrys biggest challenge is increasing the skill level of the
remaining 98% of the workforce so that it remains
globally competitive. Manufacturing in particular
has been steadily declining as plants are relocated
around the globe.
Wages and Bargaining
Because of mines location in very remote areas
that are not desirable places to live, market forces
have driven up wages to levels far, far in excess of
the oor wage that nominally covers the industry.
In one memorable example a couple of years ago
it was discovered that an unskilled high school
graduate working in an Australian mine could be
paid more than the Chairman of the U.S. Federal
Reserve (about USD 200,000).
Even at these unheard-of levels, wages are still a
relatively low cost to mining corporations. BHPs
workforce of 40,000 generated over $20 billion in
prots in 2011.[1] For comparison, Australias largest retailer -still a very successful company- has a
workforce of 200,000 but an annual prot of just
$2 billion.
Anecdotally, many people working in mining are
young unattached men in their 20s. There is another cohort made up of middle-aged men who
have incurred some major debt that they need to
pay back. This combined with the geographical
isolation has meant that the wealth being earned
in these jobs is not directly nding its way into the
rest of the community back in the nations southeast.
The high wages have also made mining sites
tough going for unions. Collective bargaining over
wages becomes irrelevant and many people are
employed on individual contracts.
31
Furthermore Australias laws still make it dicult

for unions to access workplaces, with mining
companies enforcing the countrys strict right of
entry laws to the letter.
Mining companies, as employers, are vigorously
anti-union in outlook and have a long history of
victimising or even sacking union Delegates.
When Pacic Coal, for example, made a number
of positions redundant at its Blair Athol mine in
1998, Australias workplace relations tribunal
found that it had deliberately targeted union Delegates to be sacked.[2]
existing members (not potential members),

must give 24 hours notice, must state the
reason for their visit, and must only talk to
workers when they on their breaks. These
rules were intended to be the bare minimum
to avoid running afoul of the ILOs core labour standards. To unions irritation, these
rules were not amended by the Labor Governments 2009 Fair Work Act and remain the
law. Many unions and employers have entered into memoranda of understanding
which set out more generous access to workplaces, the right to have a union noticeboard,
the right to union delegate training on company time and so on. The mining companies
do not allow any of these.
Despite all this or perhaps as a result of it unions cling on tenaciously in many sites. In 2011
there were roughly 200 industrial disputes
on mining sites across the
country, involving about
Mining companies are
66,000 employees in total.
vigorously anti-union in
Both of these gures are on
the rise.
outlook and have a long
2. The pay and conditions

of outsourced labour. Generally it is asked that these
workers have the same entitlements as the core/
history
of
victimising
or
permanently-employed workAt time of writing there is a
force (this is one of the
even sacking union
very large dispute taking place
CFMEUs wishes in the Bowen
between the Construction,
Delegates
Basin dispute mentioned
Forestry, Mining and Energy
above). This equality would
Union (CFMEU) and BHPremove much of the economMitsubishi Alliance (BMA)
ic incentive to have outsourced or contracted
aecting 4,000 workers in the Bowen Basin relabour at all, which is in the interest of the
gion of the state of Queensland. BMA has atpermanent employees. Again the companies
tempted to put in place a pared-back collective
oppose this vigorously. At present about half
agreement that gives a pay rise but removes proof BHPs real workforce are classed as indevisions relating to safety, family-friendly rostering
pendent contractors although many of these
and on-location housing. It has been decisively
so-called contractors work exclusively for
rejected by employees.
BHP and would normally be classed as emMany of the disputes are about health and safety.
ployees. They therefore suer from the unMany more are about managerial prerogative:
certainty of not knowing how long they will
management assert that they are happy to negobe employed by the company and an inability
tiate wages and conditions for employees under
to make long-term life plans. They also have
collective bargaining but that this remain strictly
no paid sick leave entitlement. All of these
limited to those matters. Unions, on the other
costs are shifted from the mining company
hand, want at least two ancillary issues to be on
onto the employees household. Union memthe bargaining table:
bers are also strongly opposed to overseas
workers being brought in to perform work
1. The right of entry of union ocials. The 2005
temporarily as they will accept much lower
WorkChoices legislation of the conservapay than Australian workers, whose positions
tive government heavily restricted the right
thus become jeopardised.
of union ocials to access workplaces. Ocials must be entering the premises to meet
32
The 2012 Budget and the Mineral Resources Rent

Tax
The prots share of the mining industry being so
high, Australias governing Labor Party in 2010
made an innovative proposal to redistribute some
of the wealth being generated in the industry to
the rest of the nation by imposing a tax on the socalled super prots of mining companies and
osetting this against a cut in the general corporate tax rate that would be used to pay for an increase to compulsory employer contributions to
Superannuation (private retirement savings) from
9% to 12% of wages.
The mining lobby, including the largest companies
BHP Billiton and Rio Tinto, retaliated with an advertising campaign costing an estimated $30
million, arguing that
this would jeopardise
investment in the industry and cost jobs.
These were somewhat
fanciful arguments but
the message was sent
so clearly and so loudly that public opinion
swung sharply against
the proposed tax. This
was the main precipitating factor in former Prime Minister
Kevin Rudds fall in
popularity and eventual replacement in
favour his thendeputy Julia Gillard
in June 2010.
Julia Gillard immediately entered negotiations with the
mining companies so that they would end their
negative advertising campaign before the imminent federal election. She won a compromise
whereby the ads ceased, BHP Billiton and Rio Tinto remained completely silent on the proposed
tax, now called the Mineral Resources Rent Tax
(MRRT), and the government agreed to lower the
proposed tax rate from 40% to eectively 22% - a

$1.5 billion reduction in the revenue that would be
collected under the tax in its rst two years.
(In other words, the mining industrys $30 million
advertising campaign paid a $1.5 billion dividend)
The MRRT was passed through Australias lower
house of Parliament in November 2011 and was
signed into law in March 2012. The Superannuation increase was passed into law at the same
time. The third bill, the one that would have balanced the ledger, was opposed by both the Liberal-National Party opposition and Greens and thus
defeated. The unexpected result is that the nonmining companies are now paying for the superannuation increase which, they assert, needs to
be paid for by holding back on wage rises. Its too
soon to tell but it does
appear that the cost is
going to simply be
absorbed by the companies.
The Liberal-National
Party is currently leading in opinion polls and
has stated that it intends to repeal the
MRRT if elected. However the soonest they
could accomplish this is
the 2014-2015 nancial
year, by which time the
tax will have been in
place for two years, so it
remains to be seen
whether they will follow
through on this pledge if
elected.
Some commentators have
suggested that the companies main reason for opposing the MRRT so vigorously is that it was a
global rst and sets a precedent for similar tax
arrangements in other countries. This already
seems to have happened, with Indonesias introduction in the last year of a tax on the export of
unprocessed minerals.
33
Australias MRRT came into eect from 1 July 2012.

Since the law has been passed, the truce appears
to have expired and BHP has come back out attacking the government for letting Australia become a high cost place to do business. These
arguments appear to be nothing short of scaremongering. Not one week later, the Bureau of
Resources and Energy Economics released analysis[3] showing that the country will receive over
$500 billion in resource and energy project investment in the next few years (94% of it in Western
Australia, Queensland and the Northern Territory). For comparison, the total value of all investment since 2000 is $138 billion.
In the coming decades, the number of the middle
class worldwide will increase from 700 million to
2.7 billion, most of them in Asia. The demand for
34
Australias natural resources is only likely to increase accordingly.

Endnotes
1) Although nearly the same number again work for
BHP as contractors rather than permanent employees.
2) A summary of similar cases can be found in Peetz, D
Decollectivist Strategies in Oceania, Relations industrielles / Industrial Relations Vol 57:2, 252-281 (Spring 2002),
at paragraph 11 http://www.erudit.org/revue/ri/2002/
v57/n2/006780ar.html accessed 26 May 2012.
3) Mining Industry Major Projects, April 2012 http://
bree.gov.au/documents/publications/resources/MiningIndustry-Major-Projects.pdf accessed 26 May 2012
OSH Column
Report Highlights Crisis of Occupational Safety and

Health in Asia
Omana George
Asia is home to some of the most dangerous
workplaces in the world. The ILO estimates that
1.1 million work-related deaths, accounting for
over half of the worlds fatalities, take place annually in Asia. On the eve of International Workers
Memorial Day on April 28, the Asia Monitor Resource Centre (AMRC) released a detailed report
from six Asian countries namely China, India, Cambodia, Philippines, Thailand and Indonesia to portray the real situation of occupational safety and
health (OSH) on the ground and the struggle of
workers, victims and their families to gain recognition, compensation and justice.
The report was prepared in collaboration with the
Asian Network for the Rights of Occupational and
Environmental Victims (ANROEV) a network of
victims groups, trade unions, labour and environmental organizations based in 16 Asian countries
all working towards a safe and healthy workplaces, OSH rights and environmental justice. These
grassroots groups, frustrated by years of apathy
by their governments and negligent employers,
decided to produce their own report to show the
extent of the problem at the ground with the
hope it will draw public attention to the senseless
massacre of workers across the region.
Sick and injured workers in Asia remain invisible
as most countries in Asia do not adequately report work-related deaths, injuries and diseases,
said AMRC Executive Director Sanjiv Pandita.
These victims are are denied justice. Their dignity. Their deaths are the price that we as society
have paid for the sake of development.
Ramesh Makwana, a silicosis victim from Gujarat,
India spoke about the problems of gem polishing
35
workers. He comes from a village that is covered

with a lm of deadly silica dust from the gems
that causes the occupational disease. First it kills
the men who are the primary breadwinners for
their families. Then the disease kills the women
who are forced to take over the work to survive
and nally it takes our children, he said. Yet, we
remain largely invisible to our governments and
are denied compensation.
The battle for compensation and justice was also
echoed by an occupational disease victim from
China. Ms. Wang, a former worker at a battery
manufacturing plant, spoke about her working
conditions in China where she was poisoned by
cadmium. Her kidneys are damaged and she has
not received any compensation for her illness.
Instead she has been harassed by the company
and government ocials in her ght for justice.
The report is aimed to bring recognition for victims like Ramesh and Wang so that they receive
treatment, compensation, rehabilitation and jus-
36
tice.
The full version of this report released on April
26th is available for download on the AMRC website http://amrc.org.hk/node/1248 . Along with the
report there were educational material both in
English and Chinese released to draw attention to
the lack of data and the struggle workers and victims face in their ght for justice. There were 2
videos made titled OSH in Asia and China victims
struggle have been uploaded on You tube for distribution.
In addition to the videos released (see on: http://
amrc.org.hk/node/1244) there were posters and
postcard made in both English and Chinese on the
stark reality of the denial of justice to those sick
and injured due to work making the struggle a
long and arduous one and also showing workers
dying in Asia and that workers do not work to
die. In the forthcoming months, AMRC will release the full version of the publication titled
Invisible Victims of Development.
Gender Column
Luviana Ariyanti: The Struggle of a Female Journalist

for Labour Rights in Indonesia
Yohana Sudarsono
It has been months since I was struck by the fact
that I was being non-job as a result of my struggle
for better working situation and welfare for my coworkers and other employees, and especially for
initiating a worker union in my workplace, yet until
today I am still feeling so bothered and weary. It is
such an irony that a TV Station that once I thought
was a human right defender, is actually just another human right violent and UNION-BUSTER!
- Luviana Ariyanti
Luviana Ariyanti, a female Journalist in MetroTV
had been released from her duty (non-job) as a
Producers Assistant for ghting for workers welfare and freedom to associate. I did not know her
in person yet at that time... but I do am familiar
with the TV station she worked in, as my favorite
TV Station, broadcasting nationally.
Audience in Indonesia recognized MetroTV as a
TV Station that always promote human rights and
justice practices along their programs. It is almost
a dream for Indonesians to have a national TVsta-
tion with qualied programs, yet MetroTV was

one of those that can be put in front of the national eyes that it was not impossible to have
good TV station with qualied programs along
the days. Metro TV was also known with their
propaganda toward Restoration of Indonesia,
enforcement of laws, protection for human rights
and justice defenders. So, it is a tragedy to know
that all they displayed and campaigned these long
is actually only big lies. Indeed, We should not
judge a book by its cover. The fact that they have
committed union busting, violenced human rights
by preventing Luviana and her co-workers from
realizing their freedom to associate and practiced
double standard on their employment system has
uncovered their real colour.
As then I knew shortly that after her nine years of
service, Luviana was being non-jobbed by the
management with no adequate reason, of which
reminded me of my own case. Not only that she
was being released from her duty, Luviana and
Luviana during demonstration (Photo: AJI Jakarta)
37
her two co-workers had also been asked to resign

without any clarication after they urged the
editorial management to reform their
broadcasting policy.
standard for position of Assistants.
This situation has been on-going for years without

any signs of improvements or changes, even
when the employees have continually given inputs and conducted discussion with the editorial
management regarding to the issues. During
those period of time, Luviana and her colleagues
have been questioning the discrimination practices regarding to the employees salary benchmark
and facilities and exploitation toward those who
are in the position of Assistant to Producer (AP)
where they must deliver duties and take responsibilities on the producer level with their salary
accused as prostitutes. In some other times, they

broadcasted pictures of violence and victims vulgarly. Luviana explained to them that those kinds
of broadcast have violated the Decision of The
Broadcasting Commision on Broadcasting Code of
Conducts and the Standard of Broadcasting Program and Journalism Code of Ethics.
Luviana and colleagues urged the management to

provide clear appraisal standard and evaluation
system for their working performance. Yet, all
their attempts didnt meet any results. ExperiencAs a journalist who has been working in MetroTV
ing the resistance from the management, Luviana
since October 1, 2002, it surely has become her
and her colleagues started to gather and initiate
nature to be critical. During her employment, her
an organisation as the rst
colleagues and she found
attempt to form worker
crucial issues in the Editoriunion. They have studied
al Management. They
Finally MetroTV terminated
that workers need a union
realized that there is no
Luviana
completely
from
to bridge their interest and
access of decent communiaspiration to be communication between the editoriher employment and
cated with the manageal management and jourstopped paying her salary
ment as individual or group
nalists especially producers
that against the Indonesian
eorts to negotiate with
and assistants to produclabour law since
the management always
ers, no clear evaluation or
meet no results.
appraisal system toward
employment termination
employees working pershould be legalised through
Luviana and her colleagues
formance, and no
the Court of Industrial
shared the idea to form a
oobjective indicators to
union to other colleagues
Dispute.
evaluate their working perand received positive reformance. Working apsponses from them since
praisal was given based on
the discrimination practices
like/dislike standard that
have
been
experienced
by most employees in
resulted in the gap on the career and salary adother units as well.
justment between employees, as seen from the
fact that two employees with the same position,
After months being non-job, on December 22,
responsibility and year- of- service can re2011, without early notice, Luviana was transceive dierent salary and dierent reward, and
ferred to the other program. In this new program,
there are some policies that are very subjective
Luviana provided evaluation due to some issues
entitled to the employees merely based on the
that she considered violated human right values
interest of the newsroom authority and the ownand gender insensitive. One example was that in
er of the TV station. Many journalist experienced
Metro Malam Program, they continually broadforce and pressure from the editorial managecasted vividly the faces of women who were
ment who arrange the contents of the news.
chased by the police in an operation, arrested and
38
Yet, instead of giving her positive response and

make improvements or change, the Editorial Management considered Luviana too critical and such
a rebel.
The discrimination and resistance from the management had made 30 producers and prodocers
assistants resign. On January after questioning
again about some other issues that was not
responded by the management.
Luviana was released ocially from her duty and
was advised to sign the resignation and severance
papers and have been promised an amount of
severance as stated in the Law of Manpower No.
13 / 2003.
rallies and campaigns to support her yet remained

no results.
After a long mediation and negotiation, the
Mediators of the The Department of Manpower
released a recommendation that again
accomodating the managements wish to
terminate her employment. Both the
management of MetroTV and Luviana do have
chance to reject or to accept the recommendation
and/or continue the case to Court of Industrial
Disputes.
Regardless of the fact that

Rejecting the
her other co-workers had
Luviana is still
recommendation of the
signed the papers and took
continuing her struggle.
Mediators mentioned, on June
the severance, Luviana
Her fight is not her own
5th 2012, the Aliansi Melawan
continued her struggle by
Topeng Restorasi (The Alliance
refusing to sign the
fight but the fights of
of Metro) and Luviana made a
resignation letter handed by
million workers in the
rally to the Headquarter of
the management, even when
world against injustice
Nasional Demokrat Party (the
the management stated that
and human rights
party formed by the owner of
Luviana had been declared as
Metro TV, Surya Paloh- a
resigning from Metro TV.
politician in Indonesia). During
Since that day, Luviana
that rally, Luviana nally met Surya Paloh who
became a stranger in her own workplace. She
promised to reinstate Luviana back to MetroTV,
kept coming as regular employee, though during
and asked for further discussion on June 7th 2012.
those days, she received intimidation from the
However, the June 7th meeting was cancelled
management by not letting her enter the oce
since Surya Paloh should go for medical check-up,
building and asking the security guards to force
and since then Luviana could not meet that owner
her to leave.
of MetroTV again and Surya Paloh has failed to
During that time, Luviana was supported by the
keep his promise to reinstate Luviana back to her
Alliance of Independent Journalist Jakarta (AJI
position. Even worst, on July 5th 2012, Metro TV
JAK) and Press Legal Aid (LBH Pers) for negotiahas succeeded to turn this case into merely an
tion to the management. The AJI JAK and LBH
industrial relationship disputes. After a promise
Pers urged the management to reinstate Luviana
from the owner of MetroTV, who is also a Politiback to her position. Somehow, the management
cian, Surya Paloh that the will reinstate Luviana
only promised to give a thought yet remain no
back to her position, of which has never been fuldecision. The negotiation has been done several
lled, nally MetroTV terminated Luviana comtimes with no good result. On February 27, 2012,
pletely from her employment and stopped paying
Metro TV registered Mediation to the Department
her salary that against the Indonesian labour law
of Manpower, West Jakarta.
since employment termination should be legalised
through the Court of Industrial Dispute.
In the Labour Law in Indonesia, registering mediation is an indication of a lay-o process. During
this time, Luviana received tremendous supports
from national networks in Aliansi Melawan Topeng
Restorasi (Aliansi Metro/Metro Alliance). The Alliance of Fight Against Restoration Mask (an alliance consisting of labour unions, press alliance,
press legal aid and other organisations to support
Luvianas struggle) had also conducted some
Luviana is still continuing her struggle. Her ght is

not her own ght but the ghts of million workers
in the world against injustice and human rights
violation. We might not know each other, just as
once I did not know Luviana personally, but we
are gathered by the same belief that the ght
against injustice and for human rights must be
39
done and never stopped. Luviana must be

supported to continue her ght. Luviana must
stay in MetroTV, and make a change there.
stop their lies, to wake them up, and to keep

them awake so that they will be able to realize
their BIG dream, Restoration of Indonesia.
Metro TV has been bombarded their audience for

years with their idea of Restoration of Indonesia.
It is indeed a big dream... A dream that will remain
as a dream if they do not wake up now! MetroTV
needs Luviana Aryanti there, to remind them to
Luvianas ght must be done and must be

continued to take the management of MetroTV
back to the ground and face the reality that
Restoring Indonesia without restoring themselves
rst is NONSENSE!
Petition: to support Luviana

http://www.change.org/petitions/owner-of-metro-tv-stop-union-busting-in-your-company
40
Regional Round-up
South Korea
Ssangyong Motor Workers Continue their

Struggle for Reinstatement
After more than 1000 days of struggle, workers

dismissed from Ssangyong Motors Pyeongtaek
factory in 2009 have yet to be granted negotiations with the companys Indian management.
Workers were dismissed in the process of structural adjustment in preparation for Ssangyong
Motors sale to the Indian conglomerate Mahindra Group. At that time, dismissed workers were
joined by their still-employed colleagues in a 77day strike and factory occupation under the slogan, We will live and survive together.
The Korean government responded to the 2009
struggle with brutal and bloody suppression. It
mobilized armed special police forces and helicopters, which rained pepper spray on the desperately struggling workers.
The struggle ended with the company agreeing to
reinstate the dismissed workers after a year of

unpaid leave. Yet neither the government nor the
company has shown any accountability in the aftermath. Not even a small part of the agreement
reached between the workers and management
has been implemented. In the meantime, 22 workers and their family members have committed
suicide due to deep sorrow and desperation.
Continuing the struggle, the Korean Metal Workers Union Ssangyong Motor Branch and many
social movement organizations including PSSP
have pitched Hope Tents in front of the Ssangyong Motor factory in Pyeongtaek since December 2011. They organized national demonstrations
called Day of Siege against Ssangyong Motor
three times in December, January and February.
Thousands of people participated. On April 21,
they will hold the 4th Day of siege.
The Ssangyong Motor struggle epitomizes
key issues faced by Korean workers, including
mass layos, state violence and speculative foreign capital. We must build broader and rmer
Ssangyong Motor workers (Photo: PSSP)
41
solidarity and strengthen our struggle if we are to

win reinstatement of the dismissed workers, prevent further deaths and confront the wider social
problems that Ssangyong Motor represents.
Janitorial and Security Workers Fight On
There are over 400,000 janitorial workers in South

Korea. Of these, only 7,853, roughly 2% were members of labour unions as of 2011. Only 2% of some
400,000 janitorial workers in Korea are organized.
Despite this low gure, Korean janitorial worker
struggle has received considerable attention for
many reasons. In particular, Korean janitors have
refused to be satised with South Koreas miserable minimum wage. They have fought for and
won a collective bargaining agreement that guarantees them wages above the legal standard. In
addition, Korean janitors have built solidarity
across workplaces and succeeded in carried out
joint collective bargaining.
Last year, janitorial and security workers organized by the KCTU-aliated Korean Public Service
and Transportation Workers Union (KPTU) at 3
universities (Korea University, Yonsei University
and Ehwa University) and one hospital (Korean
University Hospital), made the rst attempt at a
multiple worksite struggle and joint collective
bargaining. The general strike of these workers
42
Janitorial and security workers (Photo: PSSP)
the majority elderly womencarried out on

March 8, International Womens Day, made a lasting impression on the Korean labour movement.
Through their struggle, these workers won a collective agreement guaranteeing them an hourly
wage of 4,600 won (roughly $4), 240 won above
the current legal minimum. The eects of that
victory were felt throughout Korean society. Notably, 4,600 won served as a standard for the tripartied minimum wage committee in its deliberations on a new standard for 2012.
This year the janitorial and security workers have
expanded their struggle. Workers at Hongik University and Kyung Hee University have joined the
four other worksites to ght for a joint collective
agreement. The workers began by demanding an
increase to 5,410 won half the average for all
workers. As of now, they have reached a preliminary agreement for 5,100 won.
Unfortunately, this year the janitorial and security
workers face new challenges. This is because of a
revision to the Korean labor law that went into
eect on July 1, 2011, which allows more than one
union to be formed at a workplace, but require
that there be only one bargaining representative.
After the law was passed, yellow unions were

formed and the school administrations and subcontracted cleaning companies have used them
as an excuse to refuse to bargain with the democratic unions.
the ETON worksite located in the business district

of Makati City in the Philippines. The families and
their supporters lit candles, brought photos of the
victims and shared the hardships the past year
after losing their family members.
The yellow union at Hongik University is becoming

a major obstacle to the workers goals. The yellow
union has agreed to a low wage with the employer and is trying to convince the KCTUKPTU union
members to agree to accept the same standard.
The employer is using this as an excuse to refuse
negotiations with the democratic union.
The ETON Tragedy claimed 10 lives last January 27,

2011 and injuring another when the rope suspending the gondola snapped while carrying 11 workers. The workers plunged from the 42nd oor and
crashed at the iron girdles located at the 8th oor.
After the Department of Labor and Employment
(DoLE) conducted their post accident inquiry, labor inspectors learned the gondola had no permit
to operate and its material and construction substandard.
Workers at all worksites have agreed that they

will not leave their comrades at Hongik University
behind. They began the ght together and will
end it together and so are confronting the Hongik
yellow union and will not sign a collective bargaining agreement unless it includes the Hongik democratic union members.
Throughout history, Korean labour law has been
used to repress workers. And throughout history,
Korean workers have fought back in the fact of
that repression. The story of the janitorial and
security workers is one and the same.
By The Research Institute for Alternative Workers
Movements (RIAWM), South Korea
(http://www.pssp.org)
Philippines
ETON Tragedy a year after
Families of the victims and their supporters commemorated the 1st year of the ETON Tragedy last
January 27, 2012 by conducting a rally in front of
On the January 26, 2012, the families re-led the

case of Reckless Imprudence Resulting to Multiple Homicide against Lucio Tan, Chairperson of
ETON Properties and one of the richest Filipinos.
Tan also owns Philippine Airlines, Fortune Tobacco and Allied Bank and a major contributor during
the campaign of President Benigno Aquino III. The
other respondents to the case are Danilo Ignacio,
President ETON Properties, Guillermo Torres, Project Manager Arlo Aluminum, Galo Leonardo, Senior President Arlo Aluminum, Ian Lester Agpoon,
Safety Ocer, Jason Rosete, Project-in-Charge
Arlo Aluminum, Eduardo Pinon, owner EPM Glazing.
The abovementioned case is just one among the
many cases led by the families in both criminal
and labor courts. The victims also led nonpayment of minimum wages, unsafe working conditions, non-compliance to occupational health
and safety regulations resulting to death, nonregistration of social security, non-payment of
SSS, employment of minor, and violation of labor
standards at the National Labor Relations Com-
IOHSAD
43
mission (NLRC).
Construction claims another life
Another construction worker was killed last April
24, 2012 when an elevator struck his head, pinning
him between the metal oor and protruding iron
bars, killing him instantly. Alvin Espiritu, 37 years
old, from Calumpit, Bulacan, Philippines, died early Tuesday morning, April 24, 2012, when a temporary elevator at the Sun Residences project site at
Espaa Boulevard corner Mayon Street, Quezon
City struck him. Espiritu was rushed to the United
Doctors Medical Center just across the worksite,
but did not survive the fall from the 15th oor of
the 40-storey condominium. He was working at
SM Development Corporation project site under
Frey-Fil Corporation, a sub-contractor, and is survived by his wife and 5 children.
According to the Department of Labor and Employment (DoLE), the construction sector is included in the hazardous sector. Aside from accidents, workers in the sector suer from occupational disease, including musko-skeletal problems.
Safety NGO produce documentary on victims of
occupational accidents
As a contribution to the Workers Memorial Day
commemoration last Apr 28, 2012, the Institute
for Occupational Health and Safety Development
(www.IOHSAD.org) and the Australian People for
Health, Education and Development Abroad
(www.APHEDA.org.au) produced a documentary
entitled PIYON (Peon) highlighting the lives and
struggle of the survivors of victims of accident.
Under the direction of Kathy Molina and Jun Ressureccion of Mayday Multimedia
(www.maydaymultimedia.org), PIYON aims to
give light to the anonymous faces of the victims
and those they left behind. Its goal is to get into
the personal lives of their loved ones and try to
understand what it is like to cope with loss, poverty, trauma, and negligence of those responsible
for the loss of their family member. It seeks to
engage its audience, not only as mere spectators,
but as citizens who have a responsibility to bring
justice for the victims and gain support for the
struggles of the survivors and the victims fami-
44
lies. Ultimately, the documentary intends to

bridge among Filipinos the universal emotion of
loss and act as springboard for the pursuit of justice.
The 33-minute documentary is available in HD format at www.vimeo.com/channels/OSH and is free
for download.
By Noel Colina, IOHSAD, Philippines
Indonesia
In the rst three months of 2012, there was a
surge in the scale and intensity of union strikes in
Indonesia, both in term of participant of the action and the number of labour union involved. The
strikes were triggered by two schemes of Government's policies: wages regulation and the revocation of subsidies on fuel. Against these two policies, tens of thousands of workers went to streets
to protest. Not less than 40,000 workers in Bekasi
district in West Java have blockaded the
Cikampek toll road demanding wage increase and
to keep the subsidy on fuel.
In Serang district, Banten province, about 30,000
workers have blockaded the Cibitung toll road
demanding the same. Workers were also protesting in front of governor oce. And in Jakarta,
tens of thousands workers were ooding the
street to protest which have stopped the operation of Cakung Export Processing Zone in North
Jakarta, and paralysing seven industrial zones in
Bekasi, West Java. This phenomena illustrate that
workers and labour unions in Indonesia are now
capable of becoming into political power that
aect policies. Several political partes are now
taking unions power into account and some of
politicians were taking part in the workers demonstrations.
However, this time a series of workers actions
responded by military as one of military general
saying explicitly that the military must react to
tackle the demonstrations. They argue that the
demonstrations have disturbed public interest,
and will allow military personnel to beat and repel
the demonstrators. It is now more obvious that

the state apparatus including military are behind
the capital expansion, keeping the wage low and
putting labour in the more vulnerable condition.
In fact, workers demonstrations were triggered by
the act of Employer Association (Apindo) in Bekasi
regency who sues the West Java Governor to the
court for having the decision on minimum wage
increase. Local authorities in dierent provinces
came up with popular policies as the election
gets closer - on minimum wage increase slightly
higher than what Employer Association expected.
The minimum wages in Bekasi, Tangerang, and
Serang that slightly increased to Rp.1.491.866
(USD 156), Rp.1.527.000 (USD 161), and
Rp.1.469.500 (USD 155) respectively have made
the Employer Association sued the local government and demanded to lower down. The employers blamed those local governments that the minimum wage policy is meant to be used for their
popularity in the upcoming election.
The minimum wage in Indonesia is the lowest in
South-East Asia, and the third lowest in Asia. And
ironically this situation is still promoted by Indonesian government as the countrys comparative
advantage to attract foreign investments. In their
pamphlet[1], governments Investment Body mentions that the minimum wages in Indonesia is US$
0.6 per hour, lower than the Philippines (US$
1.04), Thailand (US $ 1.63) and Malaysia (US $
2.88).
Indonesian labours are more aware about politics,
and they will protest whenever and wherever they
see possible, even by blocking the highway to get
attention from the authority. They reclaim their
power through streets as alternative space for
their political participation.
Bangladesh
From January 2012 to April 2012, there were three
main issues related to the garment workers and
garment sector in Bangladesh. These three issues
are the following: (1) the amendment of Bangladesh labour law; (2) discrimination in maternity
leave; (3) special allocation in national budget for
year 2012-2013 to improve 3.6 million garment
workers in ve areas.
The latest labour law was released in 2006 and

there were unfavourable regulations for workers.
In the last two years there have been labour campaigns, pressures and mass actions demanding
the amendment of the law. Both labour and employer have submitted their own proposal for the
amendment, and the government has their own
proposal. Although there have been meetings and
negotiations, the amendment is still on hold until
it proceed to ministerial discussion, clearance
from the ministry of Law and Justice, and later it
needs endorsement in the parliament.
The leaders of 27 trade union federations in a
meeting to speed up the amendment unanimously decided to issue a joint statement: We, the
leaders of 27 trade union federations of Garment
sector in Bangladesh unanimously resolved that
Bangladesh Labour Law -2006 along with its eventual amendment last two is incomplete, contradictory, undemocratic, anti-labour rights, antiindustry, anti-healthy owner-workers relations,
against rule of law, instigate breaking of law, contradictory to the ILO Conventions, autocratic and
only protecting factory owners interests.
1) See http://embassyofindonesia.it/wp-content/
uploads/2010/07/Invest-in-Remarkable-Indonesia.pdf
By Sedane Labor Resource Center

(LIPSLembaga Informasi Perburuhan Sedane),
Indonesia
The amendment of Bangladesh 2006 labour

law
Discrimination in maternity leave
According to the labour Law, women workers are

entitled four months maternity leave. However,
most of employers do not follow the law. Many
workers do not get their maternity leave and
trade union in garment sectors have been campaigning on this issue. Recently prime minister has
mentioned that the woman involves in public sector entitle maternity leave increased up to six
months. Garment workers see this as discrimina-
45
tion; many trade unions have been campaigning

against this issue.
On international Women Day, National Garment
Workers Federation on March 8 2012 organised a
women workers black ag rally in Dhaka city. Several hundred women garment workers along with
some male workers, holding black ags high, took
part in the rally, which was followed by a procession that paraded important city streets, they
were protesting against the discrimination created by the government between working women
of public and private sector. They complained that
the government has given 6-month maternity
leave to women workers and professionals working in the public sector. But the provision for maternity leave to women workers working in the
private sector, including the readymade garment
factories, remained 4-month.
The Bangladeshi women are naturally treated as
second class citizens, hence the situation for female garment workers far more badly. The Government, in the meantime, created new discrimi-
nation between women workers and professionals. National Garment Workers Federation demanded of the government to announce immediately 6-month paid maternity leave for the private
sectors women workers, including those working
in the garment sector.
Special allocation in national budget for year

2012-2013 to improve 3.6 million garment
workers in ve areas
National budget for the year 201220-13 already

passed in the parliament session in June, but the
internal process of the national budget actually
starts 3 or 4 month earlier. That the reason many
of the trade unions including the NGWF were involved in the campaign Demanding Special allocation in the national budget to cover 5 areas for
the welfare of the garment workers.
At least 200 garment workers on April 6 held a
human chain following red ag rally in the heavy
rainy day in front of National Press Club in Dhaka
organised by National Garment Workers Federa-
Black Flag rally by the NGWF against new discrimination in the case of maternity leave. (Photo: NGWF)
46
tion to pursue workers 5-pint demands drawing

attention of the governments concerned ministries.
Before coming into power, the present government declared in the manifesto that they would
start rationing system in this scal year (2011-2012)
for the garment workers, but it is not reected in
reality. Bangladeshs national budget preparation
has been started internally for FY 2012-2013. This is
the time to remind the governments ministries
the crying demands that were not allocated in the
past years budget of BGD taka 1,126 billion (USD
22 billion).
The 5-point demands of the garment workers

were a) to allocate rationing system; b) establish
at least 10 maternity clinics for safe delivery in the
garment factory areas; c) establish at least 15 day
care centres for the working womens children in
the factory areas; d) arrange transport system for
timely attendance of the workers in the factories;
and e) build low-cost housing for the workers in
the no-mens land around the city.
By Amirul Haque Amin,
President of National Garment Workers Federation
(NGWF), Bangladesh
47
Resource/Review
AMRCs Publication
The book provides an analysis
that capital mobility has become major and underlying
factor of the precarity of workers in Asia. The chapters - case
studies on Japan, China, Philippines and Thailand - illustrate
that workers collective bargaining power has declined
which can be seen in the intensication of irregularisation,
union busting actions, company closures, and massive dismissal of workers reported
across the region. In many cases, this condition has resulted
in the weakening of militancy
of workers in countries that
used to be dynamic actors in
the labour rights movement.
The Reality of Corporate Social Responsibility: Case Studies on the

Impact of CSR on Workers in China,
India and Indonesia (2012)
As Corporate Social Responsibility (CSR) has been practiced

in many dierent ways, this
book tries to present its Asian
context by investigating how
CSR activities have been impacting people on the ground.
48
Capital mobility which has been

intensied by the process of
nancialisation has brought
about greater loss of workers
control over capital. In fact, not
all foreign capital will exit countries that restrict them with
regulation. Risk of capital ight
does not apply equally to all
corporations. In many industries, including the automotive
which is the major focus of this
book, production requires signicant initial investment in
dedicated capital equipment,
and relocation is very costly
and time consuming, therefore
it would not be undertaken
lightly. Nonetheless, the collusion of state and capital in the
undermining of the legal mech-
anisms protecting the working

people is obvious. The eorts
to democratically regulate capital have always been impeded
by the state and capital collusion for the sake of capital accumulation.
The book provides case studies

from China, South Korea, India
and Indonesia, disclosing the
ugly face of CSR. It argues that
the biggest problem with CSR
is not that it has limitations, nor
is it concerning its questionable
ability to suciently address
the problems it intends to ameliorate. Rather, it is the fact
that it takes people to a completely wrong direction.
medical and sanitation facilities, build school and houses,

and helping villagers become
self-reliant by teaching them
vocational and business skills.
Such corporate strategies have
been eectively hegemonic,
providing a strong legitimacy
and license for corporations to
sustain the exploitation of human and natural resources.
More importantly, it leads people to wrongly assume that the
business houses, and not the
states, are responsible for citizens' basic rights to better education, clean water, healthcare,
etc. It disciplines the uninformed poor motivating
them to behave in ways that
make state regulation obsolete, while leaving them at the
mercy of market forces.
For many large corporations,

CSR is primarily a strategy to
divert attention away from the
negative social and environmental impacts of their activities. In the Asian context,
CSR mostly involves activities
like adopting villages for what
they call a holistic development, in which they provide
Capital Mobility and Workers

in Asia: Case Studies on Japan,
China, Philippines, and Thailand (2011)

Against Extractive Industries - Issue of The Asian Labour Update

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Against Extractive Industries - Issue of The Asian Labour Update

Uploaded by

Copyright:

Available Formats

A SIA N L A BOU R U P DATE

PUBLISHED BY ASIA MONITOR RESOURCE CENTRE, HONG KONG

January 2012 - April 2012

The Case of Freeport Mc- 19

Report Highlights Crisis

Luviana Ariyanti: The

ASIAN LABOUR UPDATE - 80

Contributors & Editorial Board

Daisy Arago is Executive Director, Center for Trade

Abu Mufakhir is researcher with Sedane Labour

Charles Hector is human right activist, based in Malaysia. Email: easytocall@yahoo.com

Michael Walker is a union ocial in Sydney, Australia. Email: radicalcentre11@gmail.com

Yohana Sudarsono is an activist with Independent

The Research Institute for Alternative Workers

Sedane Labor Resource Center (Lembaga Informasi

Amirul Haque Amin, President of National Garment

Photo cover by CTUHR, Philippines.

ASIA MONITOR RESOURCE CENTRE

ASIAN LABOUR UPDATE - 80

electricity whereas the industry is consuming the

No Economic and Job Growth in Mining Industry in

the Aquino government formulated, the mining

ASIA MONITOR RESOURCE CENTRE

social contract with and promised to get uplifted

Concerns noted that jobs generated from mining

ASIAN LABOUR UPDATE - 80

Gate of Philsaga Mining Corp, Agusan del Sur (Photo:CTUHR)

silver extraction and has its own milling plant.

in the Philippines, which is, extractive and export

ASIA MONITOR RESOURCE CENTRE

saga can get as big as US$12.873 million. This does

ASIAN LABOUR UPDATE - 80

pany that has been existing for

Violations of health and safety

Source: Mines & Geosiences Bureau

ASIA MONITOR RESOURCE CENTRE

Independent unionism is either outrightly sup

corporations amassed a total earnings of

ASIAN LABOUR UPDATE - 80

that the mining has not undercut the poverty in

clinics etc. Whilst this may sound noble, this

found in the contract area. Permit given to large

In areas, visited by the ISMM, residents testied

community and won.

It is certain that if the manner

ASIA MONITOR RESOURCE CENTRE

of siltation in less than 10

Extractive large scale mining

The bill merits all possible support and mining as

ASIAN LABOUR UPDATE - 80

created, the Mining Act of

15) Labor Force Survey Philippines 2010-2011, Bureau of

14) ISMM interview with Mr Alelo Ensomo, CARAGA

ASIA MONITOR RESOURCE CENTRE

Mining Sector and its Future in India

cern. Today over 80,000 mines operate illegally

Mining of major minerals was a forte of the Public

ASIAN LABOUR UPDATE - 80

handed over to the private sector. Most mineral

Out of the estimated or known coal reserves

Occupational hazards in mining industry are

The reclamation costs are being estimated at