An industrial dispute at the world's biggest gold mine in Indonesia's Papua province, has turned ugly, after a striking worker was shot dead by police. Seven others were critically wounded when officers tried to stop striking workers from going into a facility at the mining complex on Monday.

About 8,000 workers have been on strike for almost a month at the US-owned Freeport McMoran copper and gold mine. Human rights activists and workers say it's time the Indonesian Government intervened, to help negotiate a peaceful outcome.

Reporter: Alma Mistry

Speakers: Paula Makabory, Papuan human rights activist; Juli Parorrongan, spokesman for the mine workers' union, the SPSI

Mistry: The workers from the Grasberg gold and copper mine in Papua were marching towards buses heading for the mine when security forces and Indonesian police, tried to stop them. Some of the men were angry because they thought that outside labour was being brought in... although they insist they weren't violent. Paula Makabory is a Papuan human rights activist based in Melbourne. She says she's been told police took a heavy handed approach.

Makabory: But they were forced by the police. The police tried to stop them and then they got mad. And then while they were being pushed by the police the police shot the gun and immediately they saw that Petir Ayamiseba lay down on the ground with blood coming out from his left chest.

Mistry: The injured man was taken to hospital but died half an hour later. Juli Parorrongan is a spokesman for the mine workers' union, the SPSI. He says the death comes after a relatively calm period in relations between mine workers and police.

Parorrongan: Recentlly the situation and condition was quiet and be calm and the conflict betwen the police and worker was stropped we'd tried to resove the problem with dialogue and mediation.

Mistry: He says workers would like the Indonesian police and Freeport Mcmoran to take responsibility for the death and to sit down with workers to resolve the issues behind the strike.

Parorrongan: We just try to resolve this problem and we hope the police department and the Freeport management will if they are responsibility of this case we hope they will meet with us to resolve this problem.

Mistry: It's estimated about 70 percent of the mine's workers are currently on strike, demanding better pay and conditions. At the moment they are paid an average of two dollars ten US per hour. After doing research about what their international Freeport counterparts make, the unions are asking for a pay rise to about 17 dollars an hour. But Mr Parorrongan says management is insisting on less than half of that.

Parorrongan: They were talking to us but they not want to appease our demand They just give us increase of wages 25 percent from the old wages. But this is still not ideal for us.

Mistry: Paula Makabory says the workers have a right to be listened to.

Makabory: The workers who are sacrifiving lives in the deepest ground, underground workers like 4000 metres underground dealing with the mining operation for copper and gold and [indecipherable] and then they are being paid just yeah one point seven that's the lowest one per hour.

Mistry: She says the workers have vowed to keep striking for at least another month and they are now putting pressure on local politicians to intervene.

Makabory: They are carrying the dead body of their fellow and his family is also joining a strike in front of the house of representatives in Timika and then all the strikers are also there they're sitting there and then they will be waiting until the company and the police come and listen to their demands.

Mistry: Ms Makabory says the Indonesian Government has been virtually silent on the issue and that no one has apologised for the death.

Makabory: Seems like Indonesian authorities are so silent on this so I talked to the workers themselves and I asked them why the Indonesian didn't do anything and they say because it seems like Freeport is another state in Indonesia.

Mistry: She says its time for the Government to help the workers negotiate a deal.

Makabory: I think this is serious because Indonesia is trying to create a good international image but with the ongoing human rights violations all over West Papua then West Papuans say that we never experience any of Indonesia's democractic systems.