ConocoPhilips Employees Plan Strike, Oppose Medco Acquisition

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  • TEMPO.CO, Jakarta - Hasbullah, Public Relation Officer of ConocoPhillips Indonesia Workers Union said that the future of the company's 700 employees hangs in the balance following a planned acquisition by PT Medco Energi Internasional Tbk. Therefore, the union plans to go on strike demanding certainty on their fate. "We are currently preparing for [the strike], including its permit," Hasbullah told Tempo on Monday evening, September 19, 2016.

    The statement was made in response to PT Medco Energi International plan to acquire 40 percent of ConocoPhillips' shares in oil and gas production block in Natuna. The acquisition will be the company’s biggest transaction after the acquisition of Newmont's stake.

    Hasbullah confirmed that the workers union will inform the planned strike to relevant institutions within the next seven days. "I hope within the next seven days [before the issuance of strike permit] the management would be willing to re-negotiate in good faith," Hasbullah said.

    Hasbullah explained that, the union has had talks with the ConocoPhilips management and the Special Task Force for Oil and Gas Upstream Business Activities (SKK Migas) with regards to their demands in light of Medco's plans to acquire ConocoPhillips. However, none of the items they demanded in the negotiation had been included in the share purchase agreement.

    The union had demanded, among others, the company to allocate severance payment into the Pension Fund (DPLK) and to manage it in state-owned banks or commercial banks. Moreover, the union had also expressed its opposition to possible layoffs of current ConocoPhillips'employees. "We are against layoffs," Hasbullah said.