Kalrez accused of illegally employing foreign staffs

Friday, December 15 2000 - 05:30 AM WIB

Oil and gas company Kalrez Petroleum (Seram) Ltd. has been accused of employing foreign staffs illegally.

A source at the state-owned oil and gas company Pertamina told Petromindo.com that Kalrez had signed contract with two additional foreign staffs although Pertamina had yet to give its approval.

The source also said that the foreign staffs were being paid at international rate of around US$8,000 per month.

But he said that ironically, Kalrez paid its local staffs well below the minimum regional salary level.

He said that this was in a violation of the ministry of labor affairs decree.

He also said that Pertamina had warned Kalrez twice about the very low salary it provided for the local staffs.

Employees of Kalrez had held a strike since December 8 demanding a raise in their salary from the current level of around Rp 285,000 per month (US$1=Rp 9,500) compared to the minimum regional salary level of between Rp 350,000-Rp 450,000 per month. The strike has caused the company, which has production level of 650 barrel per day, to temporarily halt operation.(*)

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