Labor strike at KPC enters its fourth day

Labor strike at East Kalimantan-based coalminer PT Kaltim Prima Coal (KPC) has entered its fourth day on Monday as negotiations between workers? leaders and the company management are continuing, KPC?s spokesperson told Petromindo.com.

?The strike is continuing, but I can?t tell you how far we have made progress with our talks with the workers,? Nunik Maharani Maulana said in a telephone interview from Sangatta where KPC operates a huge coalmine.

Over 2,700 workers of KPC went on strike last Friday after they found that the company would finally refuse their demand for a cash bonus after KPC?s shareholders, Rio Tinto and BP Plc, decided to sell their ownership in the company to PT Bumi Resources. The two parties had held meetings on the workers? demand.

The strike forced KPC to stop production activities.

On Saturday, KPC president director Noke Kiroyan urged workers to end their strike and return to work or face serious consequences.

Noke added that the company, which mostly export its coal products, had not yet declared a force majeure situation. He declined to provide details on the company's stock supply.

KPC officials said they in principle agreed to the workers? demand but deciding on the size of the compensation seems difficult to make.

KPC runs a huge coalmining site in Sangatta, East Kalimantan with production target of 18 million tons this year.

Meanwhile, Sem Karta, an influential figure of the leading workers union SBSI said over the weekend that the labor strike would continue until the management accommodated their demand.

Another leader of SBSI, Charullah, said Sunday they were lobbying local government officials and KPC shareholders to resolve their dispute. (leo)