Berau Coal, workers fail again to compromise

The management of East Kalimantan-based coal miner PT Berau Coal on Tuesday failed again to reach an agreement with its workers who wanted a drastic pay increase, local daily Kaltim Post reported.

The workers, who carried out loading and unloading activities for Berau Coal, insisted that they be given Rp708 (US$=Rp9,000) for removing each metric ton of the company?s coal. Meanwhile, the company management was ready to pay them no more than Rp699.06, compared with the Rp303 so far received by the workers.

Berau executives and representatives of the workers held talks on Tuesday at a building of the Berau regency council. Council members mediated their negotiations.

Officials of Dharma Lautan Nusatantara, a company organizing Berau Coal?s loading and unloading activities, declared in the meeting to stop doing business with the firm. Their move followed their failure to compromise with Berau Coal leaders.

A local port official said they would have to find another company to do loading and unloading work for Berau Coal.

Berau Coal operates coalmines in Berau regency in East Kalimantan, producing some seven million tons of coal annually.

Publicly listed heavy equipment maker PT. United Tractors is the majority owner of the company. Other shareholders are Armadian Tri Tunggal and Japan trading house Nissho Iwai. (*)