KPC paralyzed by strike
Saturday, May 27 2006 - 02:38 AM WIB
?Mining activities are completely halted? said KPC?s external relations manager Husein Akma. Akma said that the strike was illegal as negotiation on the amount of the compensation payment or also known as ?goodwill payment? is still ongoing.
Workers which are grouped in several unions held strike after they felt that KPC management was intentionally prolong the negotiation and did not show good faith to settle compensation payment.
KPC workers are demanding that they be given ?goodwill payment? after parent company JSX-listed Bumi Resources seal deal to sell KPC,a long with sister company South Kalimantan coal miner PT.Arutmin Indonesia to a consortium grouped in PT. Borneo Lumbung Energi for US$ 2.3 billion. This ?goodwill payment? is not known in Indonesian labor regulation but KPC workers had made it a habit to receive payment every time company?s ownership changed. Former owner BP PLC and Rio Tinto were also forced to make similar payment when they sold ownership to Bumi several years ago.
The workers held strike in April to push for goodwill payment and eventually the management agreed in principle to bow to workers? demand but committed to negotiate with workers to decide on the amount of compensation paid.
KPC is currently the largest single coal mine in Indonesia, targeting to produce 36 million tonnes this year. The company exports most of its coal production. (godang)