Update-KPC workers already at workplaces, but not working

East Kalimantan-based coalminer PT. Kaltim Prima Coal said on Wednesday the striking workers had begun to get back to their workplaces, but thus far still refrained from working due to an unsettled difference of opinion between the workers and management.

KPC's president Noke Kiroyan told Petromindo.Com in a phone interview that the workers demanded that the ex-gratia payment of US$6 million be paid in full while the management insisted that the amount was subject to tax deduction.

?The management and the workers? representatives will meet again today to settle the difference of opinion,? said Noke.

East Kutai's regency administration and council earlier issued a joint recommendation that the $6 million ex-gratia compensation be paid to the workers in full.

Noke said that according to the existing tax regulations, such payment was subject to tax deduction and therefore the workers must shoulder taxes on the ex-gratia payment. ?If the management pays the tax, it means the compensation to be paid by the shareholders will increase by another $2-3 million,? said Noke.

However, the workers blamed the mangement for the disagreement.

?Noke?s letter, which does not recognize recommendation of Kutai regency administration, had made the workers upset,? said Chairullah, a KPC worker from SBSI labor union.

KPC workers agreed to end the strike on Tuesday after accepting the $6 million in ex-gratia payment proposed by the management. They had been out on strike since Aug. 28 in pursuit of an initial demand that the management pay a bonus amounting to 15 percent of the value of the acquisition deal recently clinched by KPC shareholders. The firm's shareholders, Rio Tinto and BP PLC, agreed to sell their entire stakes to local firm PT Bumi Resources for US$500 million.(godang)