Dismissal of Arun workers in line with procedure: Official
Tuesday, June 8 2004 - 01:27 AM WIB
The North Aceh office of the Ministry of Labor Affairs said the dismissal of some 693 workers of LNG producer PT Arun has been conducted in accordance with existing regulation.
Head of the office Abdurrahman was quoted by the local Serambi Indonesia daily (Tuesday edition) as saying that the company had provided severance pay as required by the government regulation.
Abdurrahman made the comment as the workers, who were dismissed in early June after their contract expired, had protested the layoff policy and demanded to double the amount of the severance pay. The workers had worked with the company for between 5-20 years, the paper said.
The paper said that Arun decided not to extend the contract because the company has planned to streamline its operation as production had started to decline.
Arun previously employed over 1,678 workers.(*)