Thiess in negotiation with SPSI labor union to end strike

PT Thiess Contractors Indonesia, one of the contractors of coal mining giant PT Kaltim Prima Coal (KPC) in East Kalimantan, is currently holding negotiation talks with the SPSI labor union in a bid to end labor strike now entering its third day.

Thiess director Sam Rumende said in a statement provided for Petromindo.com that he was confident of an early resolution to this matter.

Reports have said that some 200 workers had staged a strike to demand the company to include the so-called housing and food expenses in the payment of their extra working hours. This means a greater payment for the extra work. The strike has disrupted coal production at the KPC mining sites in Sangatta.

But according to a Thiess statement, the local East Kutai office of the ministry of labor affairs has made ruling in relation to pay issue which is subject to review. Theiss said that this ruling is in direct conflict with an earlier decision on the same issue by the directorate general?s office of the ministry of labor affairs. ?This is the reason for the strike rather than payment for extra hours worked.?

Thiess also said that it had been advice by the ministry of labor affairs that the strike was illegal.

Thiess expected the workers to end the strike immediately, and to resolve the problem according to the existing law and regulation.

Rumende also said that Thiess is firmly committed to ensuring that all employees receive their correct legal entitlements. Thiess will continue to operate in accordance with the Peraturan Perundang ? Undangan Republik Indonesia Dibidang Ketenaga - Kerjaan. It is confident of an early resolution to this matter. (*)