Workers strike worsens at KPC mining site

Workers strike worsens at KPC mining site

JAKARTA (JP): At least 150 protesting workers have taken
control of vital mining facilities at PT Kaltim Prima Coal's mine
in Sanggata regency, East Kalimantan.

The KPC representative in Jakarta, Bambang Susanto, said the
workers arrived and took control of several important production
facilities at the site after the police expelled their
colleagues, who had occupied the company's main mining area.

"The workers were first expelled from the site, but they later
returned with their friends who outnumbered the police officers,"
Bambang told The Jakarta Post by phone.

He said KPC, a subsidiary of Australian mining giant Rio
Tinto, was still unable to resume operation, as the workers had
occupied one of the company's processing sites and a fuel station
since June 15.

Bambang said the company was losing Rp 3 billion (US$348,837)
each day because of the strike.

The strike started on June 14, with workers demanding a 15
percent salary increase, among other things.

Bambang said that on the first day all 150 workers staged a
protest at the mining site, but only a handful remained until the
police arrived.

He said the police took the initiative to drive out the
workers from the mining site, after the Regional Committee for
the Settlement of Labor Disputes (P4D) ruled that the strike was
illegal.

"But about one or two hours later the workers were back with
their friends and forced the police to retreat," Bambang said.

He could not tell whether a second attempt by the police would
follow.

He said local residents had expressed support for the company,
but he voiced concern that locals could take matters into their
own hands.

"They've made a statement about forcing the workers out of the
site," he said.

Furthermore, he said if the company failed to meet clients'
demand for coal, it could lose its credibility.

He said KPC was considering declaring a force majeure and
withdrawing from the operation if the strike continued.

Coal deposits at the site could be mined for another 20 years.

"This is a matter of principal, if we once yield to the
workers' demands there is no guarantee that they won't seek
another raise," he said.(bkm)