Local Laborers in Papua New Guinea Mining: Attracted or Compelled to Work?

This paper examines Papua New Guinean participation in mining from the perspective of furnishing labor. It throws light not just on current employment arrangements but also on the historical emergence of the local miner and wider canvas of age-old attitudes and traditions influencing workers’ perspectives on work. Analysis of a variety of data collected through interviews, document analysis, and direct observations of a number of events in Porgera and other mines indicate that Papua New Guinean mine workers are in a transitional phase of becoming full-fledged workers. Many of the current challenges stem from the recent introduction of capitalism into the previously predominantly subsistence sector. However, there is sufficient evidence to suggest that local mine workers are becoming more attached to paid work and this attitude is embraced by an increasing number of educated and skilled workers. This trend is set to continue as more mines become operational and as the country in general develops economically

Dynamics of Wage Fixation in a Developing Economy: The Case of Papua New Guinea

Despite the enormous significance of wage as the most dominant form of remuneration for workers, there is paucity of literature examining particularly minimum wage determination in developing countries. The reasons are numerous, however in contrast with the developed countries, most of them do not have wage related issues of high employment, advanced regulatory employment system and, single dominant formal monetary system. What is although obvious is that the determination of minimum wage in developing countries is fraught with inherent contradictions and dilemmas influenced by labour surplus, wide differentials in skills, dominant informal sector, struggling formal economy and sometimes wages paid do not reflect productivity. These factors exist simultaneously, if not in complete defiance of the usual small formal labour market

Have we walked 'on the clear(ed) path? : an assessment of the development of industrial relations in Papua New Guinea

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Multinational mining companies and indigenous workers in Papua New Guinea : tensions and challenges in employment relations

This article critically examines the tensions and challenges multinational mining companies (MNMCs,) face in the formation and control of the workforce in a developing country setting. Data gathered through extensive fieldwork, interviews and observation of Papua New Guinean mineworkers shows that the manipulation of cooperation and conflict by MNMGs is imperative to operating profitable and efficient mines. The article examines the role of MNMCs in implementing ethnic affirmative action policies which favour local communities as a strategic imperative to operations of socially and economically sound greenfield mines. The article concludes that the management of employment relations in these greenfield mines still has a long way to go if it wants to the best practices seen in some mining operations

Multinational mining companies' management of employment relations in "greenfield mines" : evidence from Papua New Guinea

This paper provides evidence from mining development in Papua New Guinea (PNG), which points out that management of employment relations in 'greenfield' mines, is no where near to the conventionality of management of mine workers in other parts of the world. The challenging part of establishment of an employment relations system is immediately felt in the recruitment stage where local and government level influence come into play with the policies of multinational mining companies (MNMCs). Together with the acute issues of dual pay, trade union recognition, commuter mode of mine operation and host of other issues place a lot of strain on an already constrained employment relations system. It also discusses MNMCs' perceptions and attitudes to the development and maintenance of employment relations system is the product of what actually prevails in the 'greenfield' mines. Further, the manipulation of cooperation and conflict in the context of employment relations and imperative to operate profitable and efficient mines inevitably allows MNMCs to have an accommodative character for living in two worlds in the PNG 'greenfield' mines. The paper concludes that this strategy is forested and maintained through the annoyance and sometimes disapproval of the national proletariat in the greenfield mines

A lot of talking and no significant economic progress : a review of wage policy in Papua New Guinea

Since gaining political independence in 1975, Papua New Guinea has always aspired to economic development. Throughout the subsequent years, it identified shaping and implementing an appropriate wage policy as one of the most practical policies to facilitate an economic environment conducive to achieving that dream. The dream seemed more achievable when the nation's political leaders saw the huge economic growth of its Asian neighbours in the 1980s. This reinforced the firm belief that they could be closer to achieving the same feat, if they too deregulated the labour market, which was seen as a significant obstacle to creation of employment opportunities and development generally. This paper traces the emergence of minimum wage policy making in Papua New Guinea and discusses the inherent concerns, issues and dilemmas associated with the shaping and performance of various wage policies. Leaders have acknowledged that high minimum wages are an obstacle to economic development. The conclusion reached from the analysis is that unless the leaders also devote more determination and commitment to isolating and dealing with other major issues (i.e. law and order, political instability and appalling infrastructure), the dream of achieving an Asian oriented economic development will prove to be only an illusion

Trade unions or tribal organisations?: the genesis of Porgera Mining and Allied Workers Union in Papua New Guinea

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Industrial and employment relations in the Papua New Guinea mining industry : with special reference to the Porgera mine

This thesis presents the findings of research into industrial and employment relations in the PNG mining industry, with particular reference to the Porgera gold mine. The thesis examines the challenges multinational mining companies go through in the formation and control of the workforces in PNG mines. Recruitment, training, localisation and industrial relations issues are discussed in relation to several mines, including Porgera. The discussion analyses two crucial concepts, 'pluralism' and 'exceptionalism' to draw attention to the fact that PNG's industrial relations system is 'pluralistic' in nature and approach; and therefore, 'exceptional' when compared to similar developing countries. Further, the thesis also analyses two theoretical models: general mode of industrialisation and state model. It assesses their applicability and relevance to PNG's human resource development and industrial relations system, particularly in the mining industry. The research draws on data gathered through long periods of fieldwork and observation of indigenous workers in PNG mines. It discusses entry to and adaptation to industrial work by Papua New Guinea tribes people. Particularly, the emergence of an industrial workforce at Porgera mine and its human resource implications are explored and discussed. One theme is the role of recruitment and training on 'greenfield' sites in the remote locations where the mines are situated. This includes the issues, concerns and dilemmas which multinational mining companies face in trying to balance the employment expectations and training requirements of both local inhabitants and the PNG government. Attention is paid to explaining how multinational mining companies have overcome such pressures by introducing ethnic affirmative action policies which favours the employment of local inhabitants. The roles of the PNG government, mining companies, trade unions and community groups are highlighted in the operation of industrial employment relations in the mines. The general aim of the thesis is to demonstrate the emergence and interplay of pluralistic institutions and the formation of an industrial workforce as a result of the mining company