Flash News
infosawit

KPBI Critiques Wage System for Workers in Palm Oil Plantations Remains Problematic



Doc. InfoSAWIT
KPBI Critiques Wage System for Workers in Palm Oil Plantations Remains Problematic

InfoSAWIT, JAKARTA – The Secretary-General of the Confederation of Indonesian Trade Unions (KPBI), Damar Panca, delivered sharp criticisms regarding the practices in the palm oil industry in Indonesia. He highlighted serious issues involving worker welfare, environmental damage, and policies that are deemed inadequate in protecting the basic rights of workers and surrounding communities.

According to Damar, the palm oil industry has rapidly expanded, spanning from Aceh to Papua, with a total area of 2.87 million hectares or about 18.7% of the national palm oil area. In West Kalimantan alone, there are 345 palm oil companies, most of which are large-scale operations.

Despite the sector employing up to 20 million workers directly and indirectly, the protection of basic workers' rights remains minimal. "The majority of workers in this sector are daily laborers who lack job security and welfare guarantees," Damar stated during the End-of-Year Press Conference for Palm Oil Plantation Workers 2024, attended by InfoSAWIT on Friday (December 27, 2024).

The palm oil industry also impacts the environment, including the loss of biodiversity and damage to marine ecosystems that are vital for fishermen's livelihoods. Damar explained that coastal areas, once rich in fish, are now experiencing declines in catch due to pollution and land conversion into palm oil plantations.

"The impacts are not only on the environment but also on the health of surrounding communities, which are threatened by pollution and poor water quality," he added.

Damar pointed out the low wage levels in the palm oil sector, especially for contract and daily laborers. He also noted the prevalence of flexible work systems that allow companies to terminate employment unilaterally.

"The contract work system or PKWT (Fixed-Term Employment Agreement) dominates up to 70% of employment relationships in this sector, benefiting companies while harming workers," he explained.

Worse still, the practice of "ghost labor," where women assisting their husbands are not recognized as official workers and do not receive wages, is still frequently encountered.

The palm oil industry is also seen as anti-union. Many companies restrict or even obstruct the existence of labor unions. In some cases, unions are forced to sign Collective Labor Agreements (PKB) that have been unilaterally drafted by companies solely to meet certification requirements such as RSPO (Roundtable on Sustainable Palm Oil).

"PKB often does not involve workers, merely to fulfill certification standards so that companies can export their products to international markets," Damar stated.

Damar urged the government to take decisive action to protect workers' rights and improve the management system of the palm oil industry. "The government needs to ensure that existing laws genuinely protect workers, the environment, and affected communities," he asserted.

This discussion serves as a reminder that behind the progress of the palm oil industry, there remains much work to be done to create social justice and environmental sustainability. (T2)


READ MORE ON GOOGLE NEWS.