East Kutai regent asked to settle KPC labor dispute

President Director of PT Kaltim Prima Coal, Noke Kiroyan, has asked the regent of East Kutai regency Mahyuddin to help persuade the company?s workers to end their strike which has taken place for more than three weeks, Kompas reported on Saturday.

In a letter sent to the regent, Noke said that the workers and the management were still divided over the implementation of the agreement, which was made recently under the coordination with the local legislative council.

He called on the regent to bridge the difference of perception and ask the workers to end the strike, which has caused the company to announce a force majeure to its suppliers and buyers.

Recently, shareholders Rio Tinto and BP PLC agreed to meet the workers? demand for a bonus from the sale of their entire stocks in the company. But, after working for several hours on Wednesday, the workers resumed their strike upon learning that the management planned to impose sanctions on some workers who participated in the strike and to cut their bonuses. The management said the US$6 million worth of bonuses it promised to the workers were subject to taxes. The workers claimed that the plans violated the previous agreement between the workers and the management.

Rio Tinto and BP have agreed to sell their entire stake in KPC for US$500 million to Bumi Resources. (*)