Badak has no intention to violate labor ruling: official

Liquefied natural gas producer PT Badak NGL in Bontang, East Kalimantan, had no intention to violate any labor ruling, company spokesman Harry Sulistiyadi said.

Harry said that the relatively low salary received by its 40 security guards compared to the provincial minimum wage occurred because the annual contract between the company and the security guards was made prior to the issuance of the ruling on the minimum wage.

Harry was quoted by the Kaltim Post daily as saying that Badak planned to raise the salary of the security guards as the working contract will be renewed later this month. The contract is renewed every year.

The federation of workers in the chemical, energy, oil, and gas sector earlier lambasted Badak for paying a very low salary for its security guards, and not providing any insurance scheme for them. The security guards only received Rp 390,000 per month (US$1=Rp 9,650), which is lower compared to the provincial minimum wage.

The labor union said that Badak had violated labor ruling and the ILO convention.

Elsewhere, Harry said that Badak planned to provide insurance for the security guards.(*)