Indonesia is the world’s largest producer of palm oil, producing more than 30 million tons annually, with an estimated 12 million hectares under cultivation. To ensure a better working condition and labour law compliance, the ILO has supported the signing of collective bargaining agreements (CBAs) in 31 companies of palm oil sector across five provinces in Sumatra and Kalimantan—two main islands accounting for 96 percent of Indonesia’s palm oil production.

Not only benefiting more than 20,000 palm oil workers, but these CBAs have also built trust and mutual respect between employers, workers and their organizations.

Covering a range of important labour rights and issues, the CBAs manages maternity right, protection for women workers against discrimination at the workplace, union representation in the occupational safety and health (OSH) committee, respect for the right to freedom of association and provision of office space for unions as a secretariat. They also include provisions for personal protective equipment and a negotiated enterprise-based wage structure, although the latter is still waiting for the new government regulation on wages.

The signings of these CBAs have been reached through a series of joint training programmes conducted by the ILO through its Advancing Workers’ Rights in Indonesia and Malaysia’s Palm Oil Sector in collaboration with the Indonesian Trade Union Network for Palm Oil (JAPBUSI) since 2021. The network of JAPBUSI consists of 10 trade union federations, affiliated with four trade union confederations.

To date, the training programmes have trained more than 1,000 local trade union leaders and members from 100 palm oil enterprises in eight targeted provinces. After the trainings, each federation and its leaders conducted follow-up trainings to assist and mentor their members and workers in drafting the CBA and preparing the negotiation process with the management. As a result, 31 companies have successfully developed the CBAs in five out of eight targeted provinces.

Nursanna Marpaung, Executive Secretary of JAPBUSI and the Head of the Trade Union Federation of Forestry, General Industry, Timber, Agriculture and Plantation (F-HUKATAN), stated that the CBA is an important instrument for the trade unions to have a better working arrangement and to enhance the respect of workers' rights. “The network will continue enhancing labour-management cooperation, particularly in promoting freedom of association and collective bargaining as part of workers’ fundamental rights at work,” she said.

“The CBA also allows workers to show their role and contribution to the company by demonstrating high productivity and performance,” said Supardi, Head of the Trade Union Federation of Food, Beverage, Tourism, Restaurant, Hotel and Tobacco (FSB KAMIPARHO), stressing the importance of the CBA as a mean to ensure workers’ labour rights that are also human rights.

Yunirwan Gah, the National Coordinator of the ILO’s Advancing Workers’ Rights in Indonesia’s Palm Oil Sector, said that the signed CBAs are considered as a significant achievement in responding to the allegations of poor working conditions, including child labour and forced labour in the palm oil sector. “The CBAs are the evidence of a mutual commitment and synergy from both companies and trade unions to address decent work deficits in the sector, promote labour compliance and enhance the image of Indonesia’s palm oil industry,” Yunirwah concluded.

In addition to the CBAs, the Indonesian Palm Oil Association (GAPKI) and JAPBUSI had signed a Joint Declaration to Promote Social Dialogue for Indonesia’s Sustainable Palm Oil last February. The Declaration focuses on actions to ensure an effective workplace bipartite cooperation, respect to freedom of association and collective bargaining, resolve industrial disputes through social dialogues and improve representation of workers, particularly women workers.