Petrosea refuses paying Rp1.1 billion to laid off workers
Monday, June 24 2002 - 06:22 AM WIB
JSX listed oil, gas and mining contractor PT Petrosea Tbk has refused to pay Rp1.1 billion (US$=Rp8,612) 11 former workers arguing that the company does not pay pensions to retiring workers, Kaltim Post reported on Monday.
The company management said that the 11 people had reached their retirement age, and according to the firm?s regulations they must stop working at the company.
They had not been laid off, and accordingly each of them was entitled to less than Rp100 million, Petrosea executives said.
Earlier, the workers demanded the Petrosea management to pay Rp100 million to each of them in compensation for their layoff.
The 11 people insisted that they had been laid off.
Petrosea is one of Indonesia?s major oil, gas and mining contractors. It is 75 percent owned by Australian construction giant Clough Engineering Group. (*)