Alfian, Jakarta – PT Freeport Indonesia, a local unit of US giant gold and copper producer Freeport-McMoRan Copper & Gold Inc, has filed lawsuits against five workers who refused to be laid off.

Freeport's lawyer Kemalsjah Siregar said on Tuesday the company needed a court verdict to settle the dispute, because earlier mediation efforts had failed to find a solution.

"The five workers reject the company decision, because they do not agree with the amount of the severance pay. We think that we have offered them (sufficient severance pay) as stipulated by the law," Kemalsjah said after a hearing at South Jakarta's industrial relations court.

Earlier this year, Freeport decided to lay off 67 of its workers, as part of the company's cost-efficiency measures in response to the global economic downturn. In its lawsuit, Freeport, which is operating in Mimika regency, Papua, mentioned that the company had taken several mitigating measures, but that some layoffs were unavoidable.

Leader of the Papua Workers Union, Yohanis Samual Nussy, had condemned the firings on the grounds of the global economic downturn as being unfair, saying Freeport and its contracting companies could economize on many other things.

He argued that higher level workers, who had thus far benefited from company facilities, such as cars and housing, should no longer get these perks, as they already received big salaries and other benefits.

Halim Sandere, one of the five Freeport's workers contesting the layoffs, said Tuesday he had rejected the company's decision because the severance pay was too low.

"Freeport treated us unfairly; We did no wrong but the company fired us without prior notification. The company also has no permit (for the layoffs) from the Manpower and Transmigration Ministry," Halim said, but refused to disclose the amount of money in question.

He said he saw no reason for Freeport to lay off its workers. "We do not see Freeport in trouble now," he said. The lawyer for the workers, Bibit Gunawan, said his clients expected the court to investigate Freeport's decision. "The court must evaluate whether this layoff is legal," he said.

Tuesday's hearing was the first hearing to try to settle the dispute. Freeport submitted the file on March 19 and the court must rule on its verdict within 50 days. Dissatisfied parties can appeal to the Supreme Court.

Freeport expects to produce 1.3 billion pounds of copper and 2.1 million ounces of gold this year.