Caltex?s contractors call for contract amendment

Contractors of oil and gas producer PT Caltex Pacific Indonesia (CPI) have called for a review of their contracts with the firm, which they said as having inflicted a loss upon them, Neraca daily reported on Tuesday.

Existing contracts with CPI, for instance, allowed the firm to give excessive penalty to transportation contractors, they said.

When their cars could not function for 10 days, CPI would not pay them the amount commensurate to their 20-day service, according to Hamdani Tarigan, chairman of Human Development Forum which groups CPI?s contractors.

Hamdani added their contracts with CPI did not allow an increase in their workers? pay because the contracts had included fixed amounts of salaries.

Hamdani said further CPI was obliged to notify contractors three months in advance before it terminated its contracts with them. This compared with the six months required from contractors if they wanted to end their contracts.

?Clearly, the contracts are beneficial to CPI only,? Hamdani said.

Hamdani said they questioned the legal basis of such contracts, and accordingly asked the central government, Riau provincial administration and CPI to review their contracts with the oil company.

CPI, the Indonesian unit of world energy giant Chevron Texaco and is Indonesia?s largest crude producer, operates in Riau. (*)