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🇮🇩 Indonesia /Economy & Trade

736 Ex-Newcrest Workers in North Maluku Still Await Severance Pay

From Tempo · (7m ago) Indonesian Critical tone

Translated from Indonesian, summarized and contextualized by DistantNews.

TLDR

  • Hundreds of former PT Newcrest Mining Limited employees in North Maluku are demanding unpaid severance pay totaling over Rp 100 billion.
  • The workers, who were laid off in a mass dismissal in 2020, have not received their due compensation despite court rulings.
  • The Supreme Court ordered Newcrest to pay the severance and seize assets, but the company has reportedly refused.

A protracted legal battle continues for hundreds of former employees of PT Newcrest Mining Limited in North Maluku, who are still awaiting their severance pay nearly six years after mass layoffs in 2020. This ongoing dispute highlights a significant failure by the Australian gold mining company to fulfill its obligations to its former workforce.

Saat ini ada 735 karyawan yang pesangonnya belum dibayarkan. Nilainya mencapai lebih dari Rp 100 miliar

— Rusli GaileaThe Chairman of the SPSI PT Nusa Halmahera Mineral labor union stating the number of affected workers and the total amount owed.

According to union representatives, approximately 735 former employees, many of whom dedicated over two decades of service to Nusa Halmahera Minerals (NHM), have not received their severance packages. The total amount owed is staggering, exceeding Rp 100 billion. This situation is particularly dire as the severance pay represents the last hope for these workers to secure their financial future and support their families.

Tapi tetap saja pesangon pekerja sampai belum dibayarkan. Kami sudah melakukan berbagai upaya, sampai putusan kasasi keluar, namun tetap Newcrest berkukuh tak mau membayar pesangon mantan pekerja

— Rusli GaileaThe union chairman expressing frustration over Newcrest's continued refusal to pay despite legal rulings.

From our perspective at Tempo, this case exemplifies the challenges faced by workers in Indonesia when confronting large multinational corporations. Despite winning a cassation appeal at the Supreme Court, which even ordered the seizure of US$35 million in assets to cover the payments, Newcrest has allegedly remained defiant. This disregard for judicial rulings is deeply concerning and raises questions about corporate accountability in the mining sector.

Jadi kami berharap Newcrest bisa menyelesaikan pembayaran pesangon yang menjadi hak pekerja NHM. Kami tidak pernah menuntut yang bukan hak pekerja

— Rudi ParetaThe Chairman of the F-GSBM PT NHM union emphasizing that the workers are only demanding their rightful dues.

The Provincial Manpower and Transmigration Office has urged the company to comply with the court's decision and honor its contractual agreements. However, the continued refusal by Newcrest to disburse the rightful payments underscores a systemic issue where corporate interests appear to supersede legal and ethical responsibilities. We will continue to follow this case, advocating for the rights of these former workers and demanding that Newcrest finally settle its outstanding debts.

Hak pesangon pekerja memang sudah sepatutnya dibayarkan. Apalagi kalau sudah ada putusan pengadilan, maka perusahaan tidak punya alasan untuk tidak membayar

— Marwan PolisiriThe Head of the North Maluku Provincial Manpower and Transmigration Office stressing the company's obligation to pay severance.
DistantNews Editorial

Originally published by Tempo in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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