Protesting workers at Caltex may face layoff
Friday, November 24 2000 - 04:30 AM WIB
Oil and gas company PT Caltex Pacific Indonesia said the demand of the protesting workers of its subcontractors for a 361 percent pay hike was unacceptable, warning the demand could lead to massive layoff.
Caltex's acting vice president of human resources affairs Dadang Muslich said the workers' demand would boost the subcontractors' operating costs and the subcontractors would be forced to take measures, including laying off many workers, to survive.
Thousands of workers of Caltex's subcontractors had been holding protests for several days, crippling Caltex's oil operation in Duri.
Dadang said as a matter of fact, five oil and gas companies had reached an agreement to raise the salary of all low-level oil and gas workers in the province by 15 percent.
The 15 percent rise would increase the monthly take home pay of the workers to Rp 875,807 from Rp 765,946 at present.
"This is a relatively big amount of money. They will obtain a larger amount of pay, if they work overtime," he said. (*)