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Oil services giant Schlumberger abusing agency workers in Indonesia

7 May, 2014The local subsidiary of US – headquartered Schlumberger is using a labour agency to avoid the trade union and pay workers lower benefits in Indonesia. Workers are mounting a fight back with the help of IndustriALL Global Union affiliate, FSP KEP-KSPI.

Employing over 900 employees in Jakarta, PT Dowell Anadrill Schlumberger is engaged in oil field services including drilling and other related services for the oil and gas industry in Indonesia. The Company is a subsidiary of Schlumberger which is headquartered in Houston, Texas, United States and is the world’s largest oilfield services company, employing around 123,000 worldwide. Other major offices are in Paris and The Hague.

In Duri, Sumatra the company is carrying out extensive specialist work for the local Chevron Oil Company operation, including cementing services, Coil Tubing Services (CTU), and Well Fracturing & Stimulation Services. The total permanent workers in Duri at Cementing and Coil Tubing Services is estimated at 70 workers, with a further 116 “temporary” workers being provided through the labour agency PT Supraco. Most of the permanent workers and workers of PT Supraco are members of SP KEP-KSPI.

All workers were recruited by Dowell Anadrill Schlumberger, they are working under the order of the company, wear the company’s uniform, work with DAS equipment, and carry ID cards issued by DAS. However the agency provided workers collect their inferior salary and health care from the labour agency. Many of the workers from the labour agency have already worked for Schlumberger continuously for between 5 and 15 years.

After negotiations failed to provide a resolution the precarious workers struck for over a week from January 2-10, 2014 and blocking the company gates, prevented the movement of equipment and machinery. Despite hurriedly convened talks involving the union, local management, the labour agency, and Chevron as well as the local manpower office and local police the company is refusing point blank to hire the labour agency provided workers directly.

The union considers the case to be a clear example of discrimination and is reporting the case to the Minister of Manpower and demanding that the company reinstate, as full time permanent employees all the workers who participated in the strike. IndustriALL totally supports our affiliate in Indonesia and has protested to Schlumberger calling on them to meet all of the totally justified union demands.