KPC workers to end strike Wednesday
Tuesday, September 16 2003 - 01:24 PM WIB
?The workers would get back to work on Wednesday after workers? representative agreed for ex-gratia compensation of $6 million,? said KPC spokesperson Nunik Maharani Maulana.
Nunik said both parties reached agreement late Tuesday in a negotiation mediated by local parliament.
The agreement would end 3-week strike that forced KPC to declare force majeure to its customers.
KPC workers have been out on strike since Aug. 28 in pursuit of an initial demand that the management pay a bonus amounting to 15 percent of the value of the acquisition deal recently clinched by KPC shareholders. The firm's shareholders, Rio Tinto and BP PLC, agreed to sell their entire stakes to local firm PT Bumi Resources for US$500 million.
Sem Karta, the head of SBSI workers? union in KPC confirmed that the workers would go back to workers on Wednesday after agreement on ex-gratia compensation was reached. ?Workers will get Rp.2 millions (US$=Rp.8,500) each per year of service,? he said. SBSI is one of the five labor unions in KPC. (godang)