SBSI agrees to allow labor office to resolve case against Vico

The SBSI labor union agreed to let the local Kutai office of the ministry of labor affairs to resolve the labor dispute at the sub contractors of oil and gas firm Vico Indonesia, the Kompas daily reported.

The paper said that SBSI made the agreement during a meeting with the Vico management on Monday. It added that the labor office would resolve the seven demands made by the protesting employees including payment for extra working hours.

The protesting employees are grouped in the SBSI labor union.

Vico official Hasanuddin Rahman said that the company would accept the resolution of the labor office and expected SBSI to do the same.

The paper, however, did not say whether the agreement would end the blockade of the main entrance into Vico. The protesting employees resumed the blockade last week.

East Kalimantan police chief Gen. Togar Sianipar said that the police would continue to keep an eye on the blockade. "I expect the situation to end immediately through negotiation." (*)