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Halliburton Out to Break Energy Union in Indonesia

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28 November, 2005

US-based Halliburton, the giant construction and oil services company so closely linked to the Bush government, is intent on supplanting a national union at its Indonesian operations in oil-rich Balikpapan, East Kalimantan.

The company is challenging the certification of Chemical Energy, Mines, Oil & Gas and General Workers’ Union (FSP KEP) at a regional labour agency, claiming a plant union is in place. FSP KEP has been the registered union at Halliburton’s energy services base in Balikpapan since 2001.

Even prior to last month’s challenge favouring a company union, Halliburton systematically has attempted to weaken FSP KEP’s representation status by refusing to recognise the union’s shop-floor leaders, and then threatening to discharge FSP KEP leaders who step forward in the course of their union responsibilities.

Halliburton got a foothold in Indonesia’s oil and energy industries some 30 years ago under the Suharto regime.