Manpower Minister asked to help settle KPC?s labor dispute

Minister of Energy and Mineral Resources Purnomo Yusgiantoro has asked his colleague Manpower and Resettlement Minister Jacob Nuwa Wea to help settle lingering labor dispute at East Kalimantan-based coal producer PT Kaltim Prima Coal, Kompas reported on Thursday.

Speaking to the press on Wednesday, Purnomo said that workers? strike which had taken place since late August had caused great financial losses not only to the company but also to the state.

?I have talked to my colleague Minister of Manpower to help settle the dispute under the existing manpower regulation. He agreed because the workers? strike has caused great loss to the state,? he said.

At least 15,000 workers of the coal company have gone on strike since August 29 demanding a US$40 million bonus from a $500 million to be raised from the sale of the company's shares.

The workers? action has caused a total halt in production activities forcing the management to issue a force majeure statement to its buyers and contractors.

The company?s shareholders Rio Tinto and BP announced recently that it would sell their entire stake in KPC to local company Bumi Resources for US$500 million. The companies expect to conclude the deal by the end of this year. (*)