Caltex promises $1.9 million to settle insurance dispute with ex-workers
Tuesday, May 22 2001 - 06:30 AM WIB
PT Caltex Pacific Indonesia has provided cash of about US$1.9 million to settle dispute between the company's 1,600 former workers with local insurance company PT AJ Tugu Mandiri, Bisnis Indonesia reported on Tuesday.
The spokesman for the oil giant's ex-workers said that Caltex was ready to give the money as long as the pensioners maintained their insurance contracts with PT AJ Tugu Mandiri.
"We appreciated the offer but it is difficult to meet Caltex's request that we should maintain our contract with PT AJ Tugu Mandiri because we don't trust the company any more," he said.
Caltex's former workers have for years demanded the insurance company to return their money after they found the company, which is partly owned by state owned company Pertamina, breached the insurance contracts.
The workers recently threatened to sue the insurance if their demand is not met. (*)