Petrosea still disagrees with workers on severance package

Wednesday, November 27 2002 - 03:19 AM WIB

The management of mining contractor PT Petrosea Tbk on Tuesday failed again to reach an agreement with its East Kalimantan workers on severance package for employees they company will lay off in the near future, local daily Kaltim Post reported on Wednesday.

The workers insisted in Tuesday?s meeting that their meal and housing allowances be included in severance package Petrosea would pay to laid off workers. Meanwhile, the company?s management refused to do so.

The head of West Kutai regency?s manpower office, Gabriel Oktavianus, mediated negotiations between the two parties. The workers worked at PT Gunung Bayan Pratama?s coal mining site in Jempang district in West Kutai, East Kalimantan.

Petrosea?s executives involved in the meeting insisted that severance package for laid off workers must be based on the contract its workers had signed in April 2001. But, the workers demanded that severance package for them must follow the decree of the Minister of Home Affairs issued in 1990, and Law No. 22 Year 1957.

The workers had in fact set forth their demand to Petrosea?s leaders when they met on Nov. 16.

Katim Post however did not mention the number of workers to be laid off.

Also on Tuesday, 36 workers of Petrosea marched to the West Kutai regency council after their negotiations with Petrosea?s management failed to turn out an agreement. The workers asked the council to help settle the labor dispute.

Council vice chairman Didik Effendi received the protesting workers, and asked Gabriel and Petrosea?s executives to come to the council. In their meeting, the workers and Petrosea?s executives agreed to negotiate again at the council Wednesday (today).

Petrosea, listed on the Jakarta Stock Exchange, is a subsidiary of Australia?s Clough Engineering Group.

The company also works for several mining firms including PT Kaltim Prima Coal, PT. Bukit Baiduri Enterprise and PT Freeport Indonesia. It is also engaged in the construction of oil and facilities in Indonesia. (*)

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