Indonesian palm oil sector improves labour-management cooperation through social dialogue

Forty-two member companies of the Indonesian Palm Oil Association (GAPKI) in West and Central Kalimantan joined the ILO and GAPKI’s training workshops on effective social dialogue for a productive sustainable palm oil sector. The workshops aimed to strengthen labour-management cooperation by raising their awareness about the principles of social dialogue based on relevant international labour standards.

The training has inspired me to promote and enhance social dialogue at work."

Rugun Enny, a participant from Central Kalimantan

Held in Pontianak, West Kalimantan from 6-7 February and Palangkaraya, Central Kalimantan from February 19-20 February, these workshops not only brought together representatives of companies’ workers and employers, but also officials of Manpower Ministry at both national and provincial levels as well as representatives of the Palm Oil Trade Union Network (Japbusi).

For two days, the participants learnt about ILO’s fundamental principles and rights at work with focus on freedom of association and the rights to collective bargaining. They actively engaged in mapping opportunities and challenges on bipartite cooperation and applying practical strategies to improve bipartite body and committee.

The participants also analysed case studies on how to effectively use social dialogue to mitigate and address labour issues such as wages, working contracts and dispute settlement in the workplace. Based on what they had learnt, the participants reflected their current labour relation practices and strategies for future improvements.

Niko Beni and Rugun Enny, two participants from West and Central Kalimantan, acknowledged the benefits gained from the training workshop. Both said that the training had given them renewed perspectives in seeking workplace solutions through social dialogue that involves a transparent two-way communication from both employers and workers.

“The training has inspired me to promote and enhance social dialogue at work,” Rugun said.

We have initiated a platform to enhance social dialogue and this will be duplicated at the provincial and district levels to ensure good labour-management cooperation and to prevent risks of forced labour throughout the palm oil supply chain."

Sumarjono Saragih, Head of Human Resources Development of GAPKI

Sumarjono Saragih, Head of Human Resources Development of GAPKI, stressed the importance of enhancing social dialogue as part of improving Indonesia’s palm oil image. He highlighted the initiative taken between GAPKI and Japbusi to develop a social dialogue platform through a joint initiative called JAGASAWITAN or sustainable palm oil in English.

“A strong commitment from both employers and workers is key to fulfil the market requirements on human rights due diligence. Thus, we have initiated a platform to enhance social dialogue and this will be duplicated at the provincial and district levels to ensure good labour-management cooperation and to prevent risks of forced labour throughout the palm oil supply chain,” he said.

Similarly, Memed Kosasih, Head of GAPKI’s Social Dialogue Unit, stated that through continuous dialogues based on good faith, both employers and workers at both enterprise and sectoral levels can create a conducive working environment that leads to improved workplace collaboration and productivity.

Meanwhile, from the perspective of the trade unionists, Japbusi’s Executive Secretary, Nursanna Marpaung greatly appreciated the recognition of the labour-management cooperation through social dialogue, particularly on freedom of association and collective bargaining. “With support of the ILO, we are able to secure the signing of 32 collective bargaining agreements in the past three years to improve working conditions in the palm oil plantation,” she emphasized.

The ILO support was provided by its Advancing Workers’ Rights in Indonesia and Malaysia’s Palm Oil Sector Project. In Indonesia, the project aims to ensure that Indonesian unions in the palm oil supply chain effectively advocate their members’ on fundamental workers’ rights, while in Malaysia aims to contribute to the elimination of child labour and forced labour in oil palm plantations.