KPC workers cancel massive striking plan

Thousands of workers of East Kalimantan top coalminer PT. Kaltim Prima Coal (KPC) agreed on Wednesday to delay plan to hold massive strike at the mine after KPC management agreed to consider ?compensation? payment to the workers.

KPC president Ari S, Hudaya told Petromindo.Com that the workers agreed to delay strike plan after management held a dialog with workers? representatives on Wednesday.

The company?s parent company PT. Bumi Resources on Wednesday signed agreement with workers? union, in which the Bumi, as 95 percent shareholders of KPC, would give ?goodwill compensation? to workers, should the sale of its entire stake in KPC and South Kalimantan coalminer PT. Arutmin Indonesia to a consortium called PT.Borneo Lumbung Energi for US$3.2 billion materialize. The amount of the compensation would be de decided by June 20, 2006 at the latest. In exchange, the workers would cancel massive striking plan, which was originally scheduled to be held Wednesday.

KPC workers had been demanding Bumi Resources as shareholders of KPC to give them compensation for the sale of KPC shares to Borneo Lumbung Energi, a practice that was not recognized legally in Indonesia but was common in KPC every time ownership of the company changed. (godang)