KPC workers refuse to negotiate with company management, govt officials

Leaders of the striking workers of East Kalimantan-based coal mining giant PT Kaltim Prima Coal (KPC) have refused to meet Tuesday with the company management and government officials to end labor strike at the firm, local daily Kaltim Post reported Monday.

Such a meeting could be held only after KPC?s labor union leaders and the company?s shareholders had concluded their negotiations, the paper quoted Nanang Asnan, who chairs KPC workers? negotiating team, as saying Sunday.

?The time has not come yet to bring the case to tripartite meetings. Real bipartite negotiation with KPC shareholders has not even started,? Nanang said.

Nanang said they had held talks only with lawyers KPC shareholders, Rio Tinto and BP Plc, since August 29 when thousands of the company?s workers went on strike, paralyzing its production activities.

He hoped their negotiation with KPC shareholders would take place soon.

Anang said the head of East Kutai office of manpower had sent a letter to KPC?s labor union leaders and management, asking them to negotiate at the manpower office Tuesday (tomorrow) with government officials acting as mediators.

Thousands of KPC workers are still on strike Monday (today) and the company?s coal production activities have not yet resumed, KPC?s spokesperson Nunik Maharani Maulana told Petromindo.com.

The workers insist that Rio Tinto and BP pay US$40 million in bonus to workers in compensation for their plan to sell their entire shares in KPC to Bumi Resources. The amount accounts for 8 percent of the $500 million price to be paid by Bumi for the entire shares. KPC officials said they in principle agreed to pay a bonus to the workers, but the amount demanded by the workers was considered too high. .

Meanwhile, Minister of Manpower Jacob Nuwawea said last week that the workers? demand was not in accordance with existing laws.

KPC operates a huge coalmine in Sangatta, in East Kalimantan?s East Kutai regency. (godang)