Labor Ministry Applauds Newmont`s Agreement with Workers

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  • TEMPO.CO, Sumbawa - The labor ministry said it appreciates a cooperation agreement (PKB) reached between PT Newmont Nusa Tenggara (NNT) with its unit of labor union.

    The ministry noted there are changes in the new agreement which are considered mutually beneficial to both sides.

    The changes are expected to benefit both the workers and the company better than expected from the previous agreement two years,director general for development of industrial relations R Irianto Simbolon said here.

    Irianto said a cooperation agreement is an industrial relation , therefore, all companies are expected to have such agreement.

    It is not a regulation of the company based only the policy of the company, he said.

    "We encourage all companies to have PKB which sets working conditions and rights and obligations of the workers and the employers," he said.

    He said the PKB signed by PT NNT and its workers is expected to improve the welfare of the workers and performance of the company in two years in line with the agreement.

    "If in two years there is no change, the six month process of negotiations on the PKB failed and should be reevaluated," he said.

    He said PKB negotiations should not take too long time as it would be inefficient.

    "Negotiations should be wrapped up in a month , even in a week," he said.

    NNT human resources manager Dadang Prihadi said the main point in the PKB is a hike in the salaries of the workers, but the increase would be by phases in two years of the PKB implementation.

    In 2015, pay hike is three percent and four percewnt in the following year, Dadang said.

    "The pay hike is effective as from January, 2015," he said.

    NNT, an Indonesian unit of the U.S. mining giant Newmont Mining Corp., has a large copper and gold mine in Sumbawa, East Nusa Tenggara.