PT Arutmin Indonesia lays off 2,000 workers

PT Arutmin Indonesia, a subsidiary of the Australia-based mining giant BHP, has laid off more than 2,000 of workers in its coal mines in Satui and Senakin in the Pulau Laut regency of South Kalimantan, Banjarmasin Pos reported on Saturday,

According to the newspaper, the workers were unilaterally dismissed without being given a fair severance payment. The workers suspected that the massive dismissal was part of a business alliance agreement signed with PT Thiess Contractor Indonesia.

According to a media report, Thiess has agreed to form an alliance with Arutmin in operating the latter's coal mines in the province. The alliance agreement with Arutmin, the second largest coal producer in the province began effective on June 2.

The company, however, denied all of the allegations, saying the business alliance was aimed to boost its mining operation and more importantly, the business deal would prevent a massive lay-off within the company.

Zainul Abidin, the manager of human resource development, said that PT Thiess, according to the business alliance agreement, will take over the management of the two coal mining sites as well as their workers. (*)