Thiess, ex-workers end year-long dispute

Australian mining contractor PT Thiess Contractors Indonesia (TCI) on Friday reached an agreement with 171 ex-workers to end their dispute after 12 months of negotiations.

Under the agreement, the ex-workers will receive severance pay and other forms of compensation according regulations issued by the national committee for labor dispute settlement (P4P), TCI said in a press statement.

Negotiations between the two sides had involved Commission VII of the House of Representatives (DPR) in charge of manpower and East Kalimantan provincial council (DPRD). DPR members had taken part in their negotiations over the past three days.

Also involved in the 12 months of negotiations were Minister of Manpower Jacob Nuwawea, the East Kalimantan vice governor, East Kalimantan council leaders, and representatives of Pasir regency administration in East Kalimantan.

TCI executive director Samel Rumende said the fruitful negotiations between them and the former workers demonstrated to the government and the Indonesian people the company?s strong commitment to continuing operation in the country. They also showed TCI?s determination to abide by the country?s laws and regulations, Rumende added.

Rumende said: ? For us, workers are company assets so that Thiess has been committed to resolving the labor dispute as soon as possible.?

On Nov 13, TCI?s leaders held a hearing with DPR?s Commission VII and explained legislators what had really happened with the former workers. Company executives in the hearing also expected legislators to help them end their dispute with the ex-workers according to existing laws and regulations and in amicable ways.

Last year, TCI fired the 171 people after they refused to return to work at its mining projects in Pasir regency in East Kalimantan. The people had gone on strike reportedly after the company management refused to pay them for extra-working hours.

The former workers insisted that their layoff was illegal and demanded TCI to continue paying them, which the company refused to do. The ex-workers used their meetings with TCI?s executives to threaten and intimidate them, according the company leaders.

Meanwhile, the East Kalimantan office of labor dispute settlement (P4D) declared that the workers? layoff was legal. Moreover, the state administrative court (PTUN) had in fact issued a verdict to overturn the Minister of Manpower?s veto over P4D?s decision.

TCI, the largest coal mining contractor in Indonesia, works for coalminer Kideco Jaya Agung in Pasir Regency in East Kalimantan.

The company also operates in other provinces in Indonesia and currently has more than 4,000 workers. (robert/leo)