Arutmin labor union rejects company offer

The labor union of coal mining firm PT Arutmin Indonesia has rejected the company's compensation package for the transfer of employees to its new partner, PT Thiess Contractor Indonesia.

Matur Simbolon of the labor union was quoted as saying by the Balikpapan-based Kaltim Post daily as saying in a press release that the company only offered Rp 500 million for non-staff employees and Rp 1 million for staff employees.

Matur said that that this amount was a humiliation to the employees, which had worked hard for years for Arutmin.

Matur said that the labor union would continue to fight for the employees demand, and warned that Arutmin could not realize its partnership deal with Thiess if the demand had not been completed first.

Arutmin is supposed to start its partnership with Thiess on June 12 to develop a coal-mining project in South Kalimantan.

Under the partnership deal, all of Arutmin employees would be transferred to Thiess. But the employees said that Arutmin must first pay a severance pay because the transfer also effectively means a layoff.

Matur also said that the working environment at the new coal-mining project was more difficult. (*)