East Kalimantan governor asked to help in wage negotiation

The SPKEP labor union, which represents some 49,000 workers of the mining, and oil and gas sectors in the Kutai regency, East Kalimantan, has asked the provincial governor to play a mediator role in the negotiation for a higher minimum wage.

The local Kaltim Post daily quoted SPKEP chairman Andi Muchtar as saying Tuesday that the current negotiation with the association of 12 companies turned difficult as both sides continued to maintain their wage proposal.

SPKEP proposed a month minimum wage of Rp 890,000 (US$1=Rp 10,400) , while the companies association insisted on Rp 535,000.

The business association argued that under the current bad economic and political situations at home, it was impossible to raise wages. It added that the price for some commodities had even dropped, pointing out as an example that the price of coal had fallen to a low of $17 per ton.

But the labor union also insisted that with the current increase in the price of basic goods, life was getting very difficult.(*)