SBSI slams KPC management, shareholders to decide KPC fate this week

The Indonesian Prosperous Labor Union (SBSI) called on the management of PT Kaltim Prima Coal (KPC) not to take an "arrogant" decision to settle conflicts with its employees affiliated to SBSI so that the blockage of its operations in Sangatta, East Kalimantan by some members of the SBSI could be stopped.

SBSI said in a statement signed by its spokesman, Andy William Sinaga, said the conflicts between KPC and SBSI could actually be settled if KPC management, in this case its president Grant Thorne, could accept 14 points demand of its employees affiliated to SBSI.

Andy said that in an agreement between SBSI and KPC signed in Jakarta on July 29, 2000, with intermediary helps from Minister of Manpower Bomer Pasaribu and the chairman of the Indonesian Business Development Council, Sofjan Wanandi, it is stipulated that if there is a deadlock in negotiations between the management and the employees, the problems would be referred to the government.

"But in reality, PKC is against that agreement," the statement said.

SBSI said KPC solely aimed to increase profits without taking care of the demands of its employees. The union noted that the reluctance of KPC to withdraw its warning letters to its employees proved that.

It noted that the content of the warning letter itself tried to ban any strike by KPC employees and was against Indonesia's prevailing law and the ILO convention NO. 98 that had been ratified by the Indonesian government.

PT KPC, one of the country's largest coal miners, is owned by British Petroleum and Rio Tinto of Australia.

SBSI said labors in other countries working with Rio Tinto had often conducted protests and demonstrations, including those in Australia, Argentina, Brazil and others.

SBSI called on the government to be selective in inviting foreign investors into the country so that the investors would respect the rights of Indonesian labors.

Meanwhile, KPC president Grant Thorne said KPC had been unable to supply its customers with coal since the 7th August when stocks at KPC's port were exhausted Force Majeure was declared on Sales Contracts on that day to minimize the costs to KPC of its failure to meet its sales commitments.

He said KPC 's shareholders from London and its Indonesian Commissioners would meet early this week. "If the operation is still closed at that time, we expect they will be forced to make hard decisions." (*)