KPC denies dismissing security officers without negotiations

Coal mining company PT Kaltim Prima Coal, which operates a huge coal mine in Sangatta, East Kalimantan denied allegations that it had dismissed tens of its security officers without prior negotiations with them, East Kalimantan-based daily Kaltim Post reported Tuesday.

KPC?s Balikpapan office head Hasrul Sani said KPC had dismissed the 38 security officers after getting approval from the government-sponsored committee for the settlement of labor dispute, which is locally better known as P4P.

He said the dismissal of the security officers followed the company?s decision to hire security firm Group 4 Securitas Indonesia in August last year.

KPC then offered the security officers three options: they remain at KPC but move to other job section, they remain at KPC but join the Group 4 or they retire, Hasrul said.

The security workers chose to quit but demanded an average of Rp 200 million (US$=Rp 11,340) per person in compensation.

KPC considered the demand ?too high? and asked the P4P to solve the case.

The P4P then approved the dismissal of the workers with a compensation of between Rp 80 million and Rp 120 million per person.

The security officers earlier claimed there was no negotiation between KPC and them prior to their dismissal and they said the compensation offered by KPC was too small and not based on the existing regulations.

Meanwhile, the dismissed security officers held a demonstration at the Kutai Timur regent?s office in Sangatta to protest their dismissals.

KPC is equally owned by Anglo-Australian mining giant Rio Tinto and Anglo-American energy firm BP Plc. (*)