Vico meets deadlock in negotiation with ex-employees
Monday, December 4 2000 - 02:00 AM WIB
Oil and gas firm PT Vico Indonesia failed to reach agreement Saturday with the protesting ex-employees of its contractors in the Kutai regency, East Kalimantan, the local Kaltim Post daily reported.
The ex-employees demanded Vico to pay cash as a compensation or severance pay, while Vico insisted on a community development program including upgrading the skills of the ex-workers.
The protest by the ex-employees has been organized by the SBSI labor union and has become a high profile case after the protesters blockaded the road at Vico complex in the Muara Bakak area, and the provincial police detained the SBSI coordinator Wuaya Kawilarang. SBSI chairman Muchtar Pakpahan filed a legal suit against the East Kalimantan police chief for the detention and accuse the police of receiving bribe from Vico. Muchtar reported the case to the House of Representatives in Jakarta, and the International Labor Organization.
Kaltim Post said that the two sides would resume negotiation on Thursday after Vico consulted the state-owned oil and gas firm Pertamina. Vico Indonesia is a partner of Pertamina under a production sharing contract mechanism. (*)