Hundreds of workers at Unocal face massive dismissals

At least 900 workers hired by Unocal Indonesia in its Balikpapan office face massive dismissals after the American oil giant decided to end the workers? contracts in December this year, Kaltim Post daily reported on Saturday.

The local SBSI labor organization said that Unocal had decided to end all the contracts with three major workers providers PT CV Bina Bersama, PT Iqbal Fadhillah, PT Aminrindo and PT Saptawell. As the consequence, about 900 people worked at Unocal through the company?s three subcontractors would lose their jobs.

"We fear that the massive layoffs will cause instability," the head of SBSI?s Balikpapan chapter Agus Pamudji was quoted as saying. Indications of the massive lay-offs were seen from the company?s decision to extend expiring contracts only for few months until December.

According to Agus, SBSI had sent at least three letters to question Unocal about the massive lay-off program but none of the letters were responded. Although the workers were hired from the three subcontractors, Unocal should be responsible because the company also helped formulate term and conditions of the contracts signed by the subcontractors with the workers, he added.

Meanwhile Unocal?s Communications and Government Relations Manager, Satria Djaya said that the company had nothing to do with the massive lay-off plan. "If there is a problem, workers should complain with subcontractors, and the latter then discuss the matter with Unocal," he said.

Satria acknowledged that the company had received invitation letters from SBSI to help solve the problem but he said that if SBSI would be involved in a meeting, it would be better not to have a meeting at all. "It is better to directly meet the workers rather than through intermediary such as SBSI," he said. (*)