KPC?s workers demand 2 percent of sale proceeds

Workers of East Kalimantan coal miner PT Kaltim Prima Coal (KPC) continued their strikes on Monday to push JSX-listed Bumi Resources to share some of its proceeds from the sale of the mining firm.

The workers, who have been on strikes since Friday, have started to count the amount of ?goodwill payment? they expect from Bumi, which is controlled by the family of Coordinating Minister for the Public?s Welfare Aburizal Bakrie, Kaltim Post reported on Tuesday.

Iman Tabroni, a spokesman for the striking workers, said the workers demanded Bumi to share two percent of the proceeds with KPC?s workers.

?If Bumi sells its stake in KPC for US$1.8 billion, that means the workers will get $36 million,? Imam said.

Bumi earlier said it had sealed a deal to sell all its ownership in KPC and South Kalimantan coal miner PT Arutmin Indonesia to a consortium grouped in PT Borneo Lumbung Energi for US$ 2.3 billion. This ?goodwill payment? demanded by KPC?s workers 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.

Badaruddin Wettoeng, one of the striking workers? leaders, warned that the workers would not discontinue their strikes until after an agreement was reached by the workers and Bumi?s management on the goodwill payment.

Kaltim Post reported that 99 percent of KPC?s workers took part in the strike, bringing KPC?s operation into a complete paralysis.

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. (*)