PRESS RELEASE: ANTAM and union in discussion to end labor action

PT Antam Tbk announces Friday that management and the labor union (Perpantam) at SBU Nickel, the company?s Southeast Sulawesi nickel operation at Pomalaa, are in discussion today to resolve misunderstandings that led to a shut down of its two smelter plants on late Tuesday April 23, 2002.

The shut down occurred after 100 of 1,400 employees staged a peaceful blockade of the ferronickel smelters to air their grievances. The pace of implementing aspects of the collective agreement, which was signed between Antam and the union in February of this year, has not been as fast as some union members would like. SBU Nickel produces 27 tons of ferronickel per day, which is shipped to customers in Europe and Asia.

The strike action was sparked over confusion with the difference between net take home pay and total income (which includes housing and health, etc.) and the associated income tax. Some employee?s were surprised and upset to see the difference between their take home pay and their total income.

This led certain workers to protest, mostly concentrating on a demand for higher salaries. There have been delays in implementing aspects of the collective agreement, including the merit-based compensation system, introduced to improve employee performance and rewards. During discussions with the union at SBU Nickel and at head office, Antam?s management will clarify all the aspirations of the union towards arriving at a workable solution.

Perpantam has indicated they are disappointed the slow implementation of the collective agreement resulted in action taken by employees and hope to find a win-win solution with management.

Antam values its loyal, longstanding customers and has a contingency plan in place should the shut down of business operations be extended.(End of release)