PT Badak accused of violating labor ruling

Liquefied natural gas producer PT Badak NGL in East Kalimantan has been accused of violating labor ruling because the company pays some 40 of its security staffs below the government minimum standard, according to the Kaltim Post daily in its Thursday report.

?It reports that the security staffs only received Rp 390,000 (US$1=Rp 9,600) per month, it?s a violation of labor ruling,? said head of the Bontang office of the federation of workers in the chemical, mining, and energy sectors (FSP-KEP) Budianto.

Reports earlier said that PT Badak only paid Rp 390,000 per month to some 40 security guards. The paper said that the company had violated the labor ruling not only because of the low monthly salary but also because the company had not provided insurance scheme to staffs, and no pension scheme or compensation even for those who have been working 10-20 years.

Budianto said that Badak had not only violated local labor ruling but had also violated the ILO convention.

The paper could not reach Badak officials for comments.(*)