Gulf Resource's workers in Jambi go on strike, demanding higher pay

At least 15 temporary workers hired by Gulf Resources in its Kenali Asam oil field in Jambi went on strike on Thursday, demanding the company to increase their salaries by about 100 percent, Media Indonesia reported.

The workers, who have been working at the company for between two years and seven years, threatened to continue their strike if the company ignored their demand. The workers demand the company to increase their basic salary from Rp 250,000 a month at present to Rp 700,000 a month beginning October.

The workers said that their current salaries were no longer enough to support their families because they had never been adjusted to the increase in living costs and prices of important commodities since it was first introduced.

The demand was also realistic enough given the success of the workers to help boost the production capacity of the company to 6,500 barrels per day from 5,000 barrels per day previously, the workers said.

But the company's executives said that the demand for more than 100 percent increase was quite unrealistic. "We have tried our best to improve the welfare of the workers such as by increasing the lunch and transportation allowance to Rp 10,000 per day from Rp 7,500 previously," said Agus, the acting manager of the joint operating body overseeing the Kenali Asam oil operation.

Although their demand is quite unrealistic, he promised to discuss it with the company's senior executives.

Gulf Resource, one of Pertamina's production sharing contractors, operates several oil and gas fields in the country. (*)