Workers resume blockade at KPC as talks collapse<\/p>\n
JAKARTA (JP): Coal mining company PT Kaltim Prima Coal (KPC)
\nstopped operations on Tuesday for a second time in less than five
\nweeks after striking workers resumed their blockade in the
\nSanggata regency, East Kalimantan.<\/p>\n
KPC representative for Jakarta Bambang Susanto said the
\nworkers resumed the blockade on late Monday after a deadlock in
\none-day negotiations.<\/p>\n
\"We ended our negotiations at about 5 p.m. and an hour later
\nthey (the workers) began to block the mine again,\" Bambang told
\nThe Jakarta Post.<\/p>\n
He said the negotiations failed to yield any results, even
\nthough the company compromised by revoking an earlier decision to
\ndismiss striking workers.<\/p>\n
Bambang said with reinstating the workers, the company
\ninsisted on imposing sanctions on them and the workers flatly
\nrejected the offer.<\/p>\n
Bambang said the company planned to suspend the wages of
\nprotesting workers during their strike to ensure that the
\nsettlement deal would not cause jealousy among workers who did
\nnot join the strike.<\/p>\n
\"The workers, however, only attended the negotiations on the
\ncondition that no sanctions would be applied to them,\" he said.<\/p>\n
Out of some 2,600 KPC employees, 150 have joined the strike.
\nThey demand, among other things, a 15 percent salary increase and
\nthe reinstallment of daily allowances.<\/p>\n
The workers began their strike on June 14 and effectively took
\nover the company's mining site a day later with the occupation of
\nimportant production facilities.<\/p>\n
Short in coal stockpiles, KPC declared force majeure earlier
\nthis month to avoid paying demurrage to its international buyers.<\/p>\n
But the strike alone, according to the company, was costing it
\nabout US$1.4 million per day or an equivalent of 50,000 metric
\ntons of coal.<\/p>\n
It further said the government suffered losses of Rp 3 billion
\n($315,000) a day in unpaid royalties and tax revenue.<\/p>\n
KPC reported last week that the striking workers had lifted
\nthe blockade on July 1, with both sides agreeing to return to
\nnegotiations.<\/p>\n
\"They've decided to resume negotiations after meeting with the
\nlocal regent and the local council,\" Bambang said.<\/p>\n
As operations were up, he said, the company also revoked its
\nforce majeure status.<\/p>\n
However, he said, KPC would reinstall its force majeure status
\nif the blockade prevailed for too long a period.<\/p>\n
\"Our stockpile can last for only three days,\" he said.<\/p>\n
KPC is jointly owned by giant Anglo-Australian mining company
\nRio Tinto and the Anglo-American-based oil and gas company BP
\nAmoco PLC.<\/p>\n
The strike was organized by the Indonesian Prosperity Trade
\nUnion (SBSI), which is one of three labor unions present at KPC.<\/p>\n
A SBSI news release said last week Rio Tinto was facing
\nsimilar problems with its workers in Australia.<\/p>\n
\"It (KPC's case) is almost the same as the continuous conflict
\nwith Rio Tinto companies in Australia, which are known
\nworldwide,\" the labor organization said.<\/p>\n
SBSI further said it was told about upcoming protests by Rio
\nTinto workers in the United States, Chili, Brazil, Norway and
\nSouth Africa.(bkm)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/workers-resume-blockade-at-kpc-as-talks-collapse-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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