PT Kobatin to fire 25 employees
Wednesday, October 10 2001 - 03:55 AM WIB
"We have offered severance for 25 employees, consisting of 21 supervisors and four management staff," Kobatin personnel manager Patrianusa.
He said the company had tried to find jobs for the 25 employees but to no avail, and the lay-off was the unavoidable alternative for them. The severance process was currently pursued together with a local labor union.
"We will meet all our obligations according to prevailing regulations," he said.
PT Kobatin is 75 percent owned by Iluka Resources, Ltd of Australia and 25 percent by state tin miner PT Timah Tbk,
Before that, Kobatin had also laid off a total of 400 contract workers and transfer 140 employees to other departments in the company.
Such a lay off was pursued following the stoppage of seven of its nine mining operation locations.
"Therefore, we currently operate only two mining sites, one at Bemban Sot and the other at Bemban Tujuh. And starting December, we will stop our mining operation at Bembang should tin prices continue to fall," Patrianusa said.
Tin prices in the international market has been falling from over $5,000 per metric ton last year to some 3,600 per ton now. (*)