Approximately 5 million workers make their living in the palm oil industry of the world’s largest palm oil producer, Indonesia. While palm oil production has largely contributed to the national GDP, wages for the workers on palm oil plantations remain low. Also, labour rights violations are a widespread problem in the sector and include lack of contracts, high production targets that encourage child labour, health and safety issues, sexual harassment and lack of freedom of association.

In 2017 a labour assessment was conducted by CNV and SOMO (Centre for Research on Multinational Corporations) in two palm oil companies in Indonesia. One of them was PT Murini Sam Sam (MSS). The study found shortcomings in wages, temporary contracts, informal family work, working conditions and freedom of association. In particular there was no formal workers union that could negotiate for better working conditions on behalf of the workers.

The workers union empowered workers at PT MSS. As a result of the workers union establishment, health and safety measures were improved, such as the work on chemicals, particularly for pregnant women. A gender committee was formed that addresses harassment, sexual intimidation and discrimination against women. Women reported to feel more protected from inappropriate behaviour now. The housing and equipment situation has improved ever since, for example through better provision of drinking water. Workers now have health insurance, but this is only available for permanent workers. Qualified temporary workers are following a track towards permanent positions and contracts, which will allow them to get health insurance too. Wilmar is in the process of getting all workers under a contract and has decreased the working hours in harvesting as part of better working conditions.

Well-established workers unions and CBAs have the potential to substantially strengthen the rights of the workers on palm oil plantations. Yet a recent assessment in West Kalimantan showed that the number of companies with workers unions and CBAs remains terribly low, only 2,9% of all plantations have a CBA. If workers unions exist, 40% of them are not affiliated with sectoral or regional trade unions. Instead, they were established by the companies themselves to fulfil administrative or certification requirements. These unions tend to negotiate in favor of the company instead of representing workers interests. Some of the existing CBAs were of poor quality in certain areas, sometimes breaching Indonesian law or containing segments that were at the disadvantage of the workers.