Canada's Bre-X to settle problems with workers<\/p>\n
JAKARTA (JP): Canada's Bre-X Minerals Ltd has assured the
\nIndonesian government that it will honor its obligations to its
\n549 dismissed workers, including 15 expatriates, by the end of
\nthe month, Antara reported yesterday.<\/p>\n
After three days of negotiation supervised by the Ministry of
\nManpower last week, the 549 workers agreed to be dismissed from
\nMay 19, while Bre-X agreed to pay medical, transportation and
\nhousing allowances, their May salaries and severance pay, as
\nrequired by government regulations.<\/p>\n
The company temporarily maintains 15 employees, including an
\nexpatriate, accounting staff, a driver and office boy, to settle
\nits liabilities to creditors, the government and workers.<\/p>\n
\"The severance pay ranges from Rp 2 million to Rp 36 million,
\nand it adds up to US$740,000,\" Director General of Industrial
\nRelations and Labor Standards Suwarto was quoted by Antara as
\nsaying yesterday. He said he was satisfied with the result of the
\nnegotiations.<\/p>\n
According to Suwarto, the dismissed workers included 400
\nworkers in Busang, 30 in Aceh, 40 in North Sulawesi, 13 in Irian
\nJaya and 23 in Jakarta.<\/p>\n
The Indonesian government froze all Bre-X operations and those
\nof its local subsidiaries on May 6 after the company's claims of
\na 200-million ounce gold find at Busang, East Kalimantan, were
\nfound to be false.<\/p>\n
Bre-X financial director Bernhard Leod accompanied Suwarto at
\nthe press conference at the ministry yesterday.<\/p>\n
According to Leod, the money for the workers was in a bank and
\nwould be paid out before the end of the month.<\/p>\n
Leod denied his own statement last week that Bre-X planned to
\nsell all its assets in Kalimantan, Jakarta, Aceh and North
\nSulawesi to meet financial obligations.<\/p>\n
\"It is not true that we sold our assets to pay the workers,\"
\nhe said.<\/p>\n
Leod expressed hope that his company would be allowed to
\nresume operations in Indonesia.<\/p>\n
Despite having a credibility problem due to the gold hoax,
\nSuwarto said he believed Bre-X would fulfill its commitments.<\/p>\n
\"I don't want to link it with the gold, but I am confident the
\ncompany will pay its workers soon,\" said Suwarto. He did not say
\nwhat his office would do if Bre-X reneged. (06)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/canadas-bre-x-to-settle-problems-with-workers-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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