PRESS RELEASE: KPC announces ex-gratia payment
Thursday, September 11 2003 - 10:47 AM WIB
SP.109/840X/NMM/VIII/2003
11 September 2003
KPC Announces Ex-Gratia Payment
Sangatta ? KPC?s shareholders have agreed to give an ex-gratia payment to KPC employees. In order to be eligible, an employee must return to work by 12 September at 08.00 WITA and remain at work through to the completion of the sale to PT Bumi Resources Tbk (BR) now scheduled for 10 October 2003.
Eligible employees will receive the greater of:
or
The average service of KPC?s operators is 8.5 years.
The shareholders have confirmed that the decision is non-negotiable.
The total ex-gratia payment will be approximately Rp50 billion or US$6 million and will be paid by BP and Rio Tinto after the settlement of the sale occurs to BR, which is expected to be completed by 10 October 2003.
KPC?s President Director, Noke Kiroyan, stated, ?This is a generous payment considering that an ex-gratia payment is based solely on the goodwill of the shareholders and is nonnormative.?
KPC employees have been advised that BR have confirmed that they will abide by the same terms and conditions that prevail under KPC?s Collective Employment Agreement and other existing employment arrangements. BR have indicated that any employees who have an existing KPC contract and who wish to remain in KPC will be most welcome.
Yesterday KPC Management issued the First Summons to the strikers to return to work as normal by 08:00 am, Friday 12 September 2003. (End of release)
For more information, please contact:
Nunik Maharani Maulana
Manager External Relations
PT Kaltim Prima Coal