PT ADP finally allowed to dismiss its 400 workers

The central office of the government-sanctioned commission for the settlement of labor conflicts or locally known as P4 has allowed PT Adiputera Dewasajaya (ADP), a contractor of the state-owned coal mining company PT Tambang Batubara Bukit Asam (PTBA), to dismiss its 400 workers.

PT BA is Indonesia's third largest coal producer, located in Southern part of Sumatra.

Sriwijaya Pos reported on Tuesday that under the agreement issued on March 30, the company was required to pay a total compensation of about Rp 6.5 billion (1US$=Rp 10,500) to the 400 workers. But the payment would be made only after representatives of the workers, PT Bukit Asam and Bank Universal settled Adiputera's funds which had been blocked by the bank.

Adiputera had to quit its operation last year after PT Bukit Asam cut its contract. The coal mining company also refused to pay the contract worth Rp 5.7 billion to Adiputera on the ground that the payment had been blocked by Bank Universal.

Bank Universal claimed that the money was part of the collateral placed by Adiputera to secure its borrowings to the bank.

According to P4 agreement, the former workers of Adiputera will receive compensation worth between Rp 2.9 million to Rp 100 million each depending on their working experience in the company.

The legal representative of the workers said that because Adiputera's claims of about Rp 5.7 billion to PT Bukit Asam would not be enough to pay all the compensation payment, all the remaining assets of the company would be seized to offset the shortfall.(*)