KPC workers end strike, lift blockade

KPC workers end strike, lift blockade

JAKARTA (JP): Striking workers at coal mining company PT
Kaltim Prima Coal (kPC) ended their five-week strike on Saturday
and lifted the blockade that had led to temporary closure of the
company's operation in the Sanggata regency, East Kalimantan, an
executive of the company said.

"They've cleared the mining site and we're now checking
whether any of the heavy vehicles used for the blockade suffer
from damages," KPC representative for Jakarta Bambang told The
Jakarta Post over the weekend.

He said the workers agreed to lift the blockade after meeting
with Muchtar Pakpahan, the chairman of the Indonesian Prosperity
Labor Union (SBSI), which organized the strike.

Bambang said that KPC would resume operation by Saturday
evening.

The striking workers took the company by surprise last week
when they unexpectedly backed away from an earlier agreement to
end the strike.

Prerequisite for the agreement was to resume negotiations on
the workers' demands, which include a 15 percent salary increase
and the reinstallment of daily allowances.

Bambang said that with the workers' decision to end the
strike, negotiations could resume on July 31 in Jakarta.

However, he was cautious about predicting that the mining site
would remain in operation, considering the unpredictable behavior
of the workers.

KPC stopped operations on Tuesday last week for the second
time in less than five weeks because of fruitless negotiations.

Negotiations at the Ministry of Manpower in Jakarta between
KPC and SBSI faltered last week.

Bambang rejected the notion that a misunderstanding between
negotiators in Jakarta and the workers on site caused them to
back away from their initial agreement to end the strike.

"They (the striking workers) simply have no respect for
rules," he said.

Bambang said earlier that SBSI should honor the deal it had
made with KPC, and that disagreements within SBSI were of no
concern to the company.

He also criticized the 150 striking workers for enforcing
their will on the company, as they represented only a minority of
KPC's working force of 2,600 people.

Losses

The company has reported losses of US$ 1.4 million a day,
equivalent to 50,000 metric tons of coal, due to the blockade.

It further said that the government was losing up to Rp 3
billion (US$337,000) a day in royalties and tax revenue.

KPC is jointly owned by giant Anglo-Australian mining company
Rio Tinto and British-American oil and gas company BP Amoco PLC.

Asked whether he suspected the involvement of foreign anti-
mining movements in the dispute, Bambang said he saw no
indications of such an influence.

He was responding to a statement by Minister of Mines and
Energy Susilo Bambang Yudhoyono, who blamed foreign anti-mining
movements for many disputes between mining firms and local
residents or workers.

The minister said he found indications of covert activities
aimed at shutting down Indonesian mining operations.

However, Bambang admitted that the KPC dispute might be under
the observance of foreign non-governmental organizations (NGO).

"I've seen members of foreign NGOs accompanying the striking
workers during negotiations," he said.

But the foreigners took no active part in the talks, they
merely observed the process he added.

Meanwhile executive of the Indonesian Mining Association (IMA)
Paul L. Coutrier shares the minister's suspicion of a foreign
anti-mining movement.

"IMA suspects the same, the only reason why we haven't spoken
out before, is because there is no proof of such a movement," he
said.

In the case of KPC, Coutrier said, the strike clearly
benefited the company's competitors.

Coutrier said it was reasonable that many coal producing
countries resented Indonesia because of its success in exporting
coal.

According to him, Indonesia managed within 10 years to raise
its coal production to the present level of about 70 million tons
from only 10 million tons.

He noted that competitors might sponsor anti-mining movements
in Indonesia through the involvement of NGOs.

But he added that NGOs were essential in the mining industry
to maintain checks and balances.

"This is a democracy, people should be able to express their
opinion as a means to check and balance," he said.

However, he said that any disputes with mining companies
should not force a company to close down its operation.

Even with charges of environmental damage, surrounding
communities and the government are still economically dependent
on mining operations.

"Especially in these hard times, we cannot afford to loose
income and employment," he explained.

Coutrier suggested that NGOs should provide scientific
evidence before making allegations. (bkm)