IFA ’12: Strike called off at APC’s potash complex in Jordan

21 May 2012 00:00  [Source: ICIS news]

APCDOHA, Qatar (ICIS)--A strike at Arab Potash Co’s (APC) complex in southern Ghor, Jordan, was called off on 19 May after workers and the company’s management reached a compromise, a company official said at the sidelines of the International Fertilizer Industry Association (IFA) conference on Sunday.

The strike began on 26 April, and workers’ demands included end-of-service compensation, annual pay increases, scholarships for their children and an increase in overtime payments.

The government held a series of meetings between the workers and the management. It was decided that contributions to the employees' compensation fund will be increased to 2% of the company’s net profit, provided that it did not exceed Jordanian dinar (JD) 6m ($8.5m).  Some other demands were also met, but no details are available yet.

Production and shipments were halted during the strike, which involved all of the company’s 2,400 employees. The company lost more than 6,000 tonnes of potash output daily, which amounts to an estimated 150,000 tonnes for the duration of the strike.

The resolution to the strike comes at an important time, since APC is under contract to supply 250,000 tonnes of potash to China during the quarter. While some of the cargoes to China were shipped before the strike, the majority of the shipments is still due.

APC also ships smaller quantities to Europe and east Africa. It is likely that the company will resume negotiations to both regions now that the strike has ended.

APC is also likely to discuss new business during the IFA conference in Doha, which runs from 20-23 May.

($1 = JD0.71)

By: Deepika Thapliyal
+44 208 652 3214

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