KPC resumes operation after workers end strike

The East Kalimantan-based coal producer PT Kaltim Prima Coal (KPC) resumed its production activities on Sunday after protesting workers finally agreed to end their strike which had taken place for more than three weeks, Kompas reported on Tuesday.

A representative of the workers, Chairullah, told the daily that the workers agreed to end their strike following an appeal from East Kutai Regent Mahyuddin to return to work. He added that the workers agreed to return to work after the regent promised to help in negotiation with the company’s management.

The regent also asked the KPC management not to give any sanction to workers who had been involved in the three-week strike which had caused a total halt in the company’s production activities.

The workers began their strike on August 29 demanding the company’s shareholders, Rio Tinto and BP Plc, to provide a bonus from the sale of their entire stake to Bumi Resources.

The shareholders later agreed to provide a goodwill bonus of US$6 million but the workers continued their strike they did not agree with the mechanism in the distribution of the bonus proposed by the KPC management.

KPC reported the strike caused a loss in production to 60,000 tons per day, or about US$500,000 per day. (*)