KPC, trade unions sign cooperation agreement

East Kalimantan-based coalminer PT Kaltim Prima Coal (KPC) has signed a cooperation agreement with four labor unions to ensure harmonious relationships between the company and its workers, local daily Kaltim Post reported Tuesday.

The trade unions signing the so-called ?Prima Perkasa? accord were from East Kalimantan?s East Kutai regency, the location of KPC?s coal mining operations. They were Coal Mining Workers Corps (Korppra), Indonesian Prosperous Labor Union (SBSI), Indonesian Moslem Workers Brotherhood (PPMI) and Justice Labor Union (SPK).

?At the micro level, the agreement aims to maintain harmonious relationships between the company and its workers while facilitating bipartite and tripartite settlement of labor disputes in Indonesia at the macro level,? said industrial relations director general S Lumban Gaol who attended the accord signing ceremony in Jakarta over the weekend. The agreement is effective until 2005.

Numerous labor disputes had occurred in the country?s mining sector over the past months with SBSI being the strongest proponent of workers? action.

KPC, equally owned by Rio Tinto and BP Plc, operates a huge coalmine in East Kutai?s Sangatta district. It is Indonesia?s major coal producer. (*)