owoga”e ow owe Goewweew sevevvevvKvvvvevevwewwewy KBS Fact Sheet Protection of Indonesian Palm Oil Labour 2018 cam Fura A TRADE UNION RIGHTS CENTRE ffFact Sheet on Protection of Indonesian Palm Oil Labour 2018, “We need to examine and fathom employment issues and cases that occurred in the palm oil industry. We need to look at the problem first. If an employment violation is found, action remains to be taken. If there are no findings, it means merely an issue.” Hanif Dhakiri, Minister of Manpower of the Republic of Indonesia! 1) bp: //wrwwaibunnews.com/kilts-kementerian/2018/01/10/pengusaha-sawit-mengadu-kepads-Kemnake Jantaran-setng dlvor paisv-negeif accessed on January 24, 2018wevevvevvve vee vewvwuweeHuoweHwnH~HvHOHHeHeHHHeHoHwoHeHeuuse Fact Sheet on Protection of Indonesian Palm Oil Labour 2018 I. THE CONDITION OF PALM OIL PLANTATION LABOURS IN INDONESIA [As the world's largest producer of palm oil, Indonesia i in the spodight for its export contribution of 51.7% or 144 billion dollars (IDR 194 tillion)* as well as for its poor labour practices that are criticized by civil society organizations due to its participation in labour rights violation. Violation of labour rights in palm oil plantation is certainly not in line with mission stated in the National Medium Term Development Plan (Rencana Pembangrnan Jangha ‘Menengah or RPJMN) 2015 -2019 andl Nawuaita (nine development priorities) of President Joko Widodo, In other perspective, during his meeting with GAPKI (lidonesian Pal Oi! Assocation), Indonesian Minister of Manpower encourage the strengthening of role and position of trade/labour unions which are believed to address problems faced by workers/labours intensively? This is a reflection of government's concern for industries that employ up to 21 million people directly and indirectly.* Thus, there are still many challenges faced by the government in conducting labour inspection in the palm oil sector. Inadequate number of labour inspectors and isolated sites of palm oil plantation are some of the many challenges. Unfortunately, the presence of trade/Iabour unions has not been positively interpreted by the management in many companies. Considering the high amount of state income from the palm oil industry, which reached IDR 251.4 trillion palm oil labour should be valued as foreign exchange hero. In realty, violation of labours rights and disbanding of Labour Union occur in palm oil plantation. ‘The abovementioned problems have become more complex as to date there is no clear data on the umber of palm oil labours in plantations spread from Sabang to Merauke. According to data from the Coordinating Minister for Economie Affairs 8 million people work in palm oil plantations.’ Meanwhile, according to Minister of Manpower Hanif Dhakiri in 2016 there are about 10 million people work in palm oil plantations. Sawit Watch estimates 70% of workers are daily workers.” Then in 2017, out of 11841 million workers, 31.86% ot 37,725,426 were working in agriculture sector though they were not specified in what type of agricultural production.* While Statistics Indonesia (BPS) recorded in February 2017, Indonesian mostly worked in the agricultural sector ie. a least 39.68 million workers, or 31.86% of the total working population? ‘The Coaiton of Indonesian Civil Society fr Solidarity of Palw Oil Workers (hercinafter referred to as the Palm Oil Workers Coalition) in its Position Paper sees the urgency to resolve such complex issues and creates legal protection through the issuance of special regulations for agricultural workers in general and in palm oil plantations in particular ‘When inventoried, the main problems faced by palm oil plantation labours can be grouped into 2 (two) major parts as Follow: 1. Weak Law Enforcement ‘a, Excessive workload, inhumane target and the emergence of child labour 2) Workman, Daniel. Geptember 2017) Palm Oil Exports by Country, hupy//www:worldstopespons.com/pala-oik-expons-by-county/ 3) Bito Humas Kemnakee. (® January 2018). Sering Diteepa lsu Negaif, Peagutaha Sawit Mengads ke Menaker. bnps//kemoaker.goi/ berita/berta kemnaker/ seting citerpa-isu-negstf pengueaha-sawit-mengadu-ke-menaker 4) Maskur, Patkhul. (15 October 2014). Kadin Indonesiax Indust Sawit Serpp 21 Jota Tenaga Keri. bp:/induseibisnis.com/ read/20141015/99/ 265233 ain indonesia-indust-sawit-serap-21-jta-tenaga-kesja 5) Sti Mulan, @ February 2017). Sei Mulyani Minta ous) Savit_ Sumbang Pendapatan Negara bhups://bisniseempo.co/ read /842383/sr-mulyani-mints-ndste-sviesumbang-pendapatan-nogars 6) Dr. Wilisua Dani. Assistant Deputy Coordinating Ministry for Beonomie Affirs at the Spmposium on Strargie Law Complince in Indonesia Through Inspection System, Jakarta, 3 Apri 2017 7) Hanif Dhak atthe 5 Congress of Sawit Watch Association at IPB Convention Centre, Tuesday 22 November 216 8) Menaker website hep:/ /pusdatn kemnalkes go i. (Febnoary 2017, BPS: Berita Resmi Statistic No, 47/05 /Th.XN. 5 May 2017, Processed by Puedatnakr) yy 2017, 9) Hamdani, Trio. “31,86% Pendoduk Kerja Indonesia Ada di Sektor Pertanian", OkezoncFinanee, 5 Inups//economy okezone.com/read/2017/05/05/320/1683805/31.86 penduduk: heya indonesia-ada--ektor-pe 2#evwovuuwswuvuwvnvwoueuuueHweHuHeHueHeHeHeHoHeHeHoHeeaHwoHoHueHwoHoeueye Fact Sheet on Protection of Indonesian Palm Oil Labour 2018 Based on economic calculation, palm oil plantation companies set very high and inhuman targets, followed by the threat of fine sanctions if the target is not reached, therefore labours are forced to seek help, kere!” paid by labours themselves,!! labours are also faced with difficult topographic conditions, without proper work tools. Resulting in, very inhumane workload. Seeing that inhumane workload assignment, employers provide and let opportunities for child labour practice in palm oil plantations, under the pretest that working children are part of Indonesian cculture.!2 There is even a reminder that the practice of child labour in palm oil plantation is part of the educational and fun mechanism to understand family responsibilities.!® This is a violation of the positive law regulated under Articles 69-73 of Law no. 13/2003 on Manpower, Ministerial Decree no. 235/2003, and Law no. 20/1999 on the Ratification of ILO Convention No.138/1973 on the Minimum Age. Due to this violation on child labour, the US Department of Labour, since 2014, categorizes Indonesia's palm oil in the List of Goode Produced by Child Labour or Fored Labour In April 2017, the Earopean Parliament passed a Report on Palm Oil Plantation and Deforestation of Rainforest in ‘Strasbourg, France, which links the Indonesian palm oil industry to human rights violations.!5 b. Low Wage Practices Low wage practices still occur in palm oil plantations; '6 this violates Law no. 13/2003 on Manpower and Government Regulation (PP) no. 78/2015 on Remuneration, To date there are still many areas with no UMK (district minimam wage) and UMSK (Minimum Wage for Plantation Sector). The determination of Decent Living Needs (Kebutnhan Hidyp Leyak, KHL) through negotiation mechanism at the wage council did not involve the Palm Oil Plantation Workers Discrimination of wages is also still experienced by female workers in relation to article 21 of Income ‘Tax (Pajak Pergbasilan oF PPH). Palm Oil Workers Coalition’s findings on low pay are as follows: 10) Korsetor tua herons ate wives and children or others pad by harvester or assistant help harvester. "They do not have a working relationship with the company. Ke! or Ahan brane! usually helps scavenge for fallen oil pales keene! (wad), transport fruit to the collection point (Temps Pamapelor Has, TPH, eut and arrange palm fronds in inactive pathway. Employment stars of Aeme is not recognized because they are recruited and hired by baevestr, Further read on seport by RAN, OPPUK, ILRF, Tée Haman Cor Pale (i San Franciseo, 2016, 1) In pal il plantasions in Sumatra ancl Kalimantan iti til found that a harvester is targeted to collect 2 0 3 toas of palm frit per day. Ie means, one harvester collects 140 to 160 of feesh fruit bunches and each bunch weighs between 15 - 20 kg, Cleary che target is very high; this can be compared with one Toyota Alphard weighing 1.9 tons of crop yields from an area of 5 football fick. worker bars a high target of up to 3 tons per day added by several other respoasibiles such as making a frog cage, transporting fruit ro the collection point (Tonpar Pengumpaler Hail TPH, scsvenging for fillen oil palm kernel pruning (leaning palm fronds) and aranging pal fronds in inactive pathway. 12) Jong, Hans Nicholas. “NGO alleges abuses at Indofood plantations" The Jakarta Poet 9 June 2016. Ibaps//avww.tjakarrapost.com/ news/2016/06/09/ngo-allees-abuses indofood- plantations html 13) Executive Director of PASPI (Palm Oil Agribusiness Strategic Policy Insitute; I. Tungkot Sipayung in bis book Palm Myth Vs Facts analogize children who work atthe plantation like village children who go to the fem or field with dheir parents. Investigation ‘conducted in palm oil plantations in Sumatra and Kalimantan, found children under the age of 18 were employed as Kem. In the incerview, workers stated that they were obliged to bring Kerm. If you do not have a Ker the workers wil be seat home without ‘getting paid forthe day. The international organization in its report interviewed fve childeen working in plancations in Sumatra and Kalimantan owned by Buyer Interaaional and ies supplies. These childeea wore from the age of 8 years to help thee parents reach their target, get premiums and avoid fines. 14) United States Department of Labous, List of Goods Produced by Child Labour or Forced Labour, 1 December 2014 “Hug /swwsll.gow/iay/eeports/pdl/TVPRA_Report2014.pdF 15) European Patamen?s Resolition on Palm Oil nd Deforestation of Reinforests, hi//iwe dopubRet=.//EP/ /TENT+REPORT+A8.2017.0066+0+DOC#XMLHVO//EN aeceised on 10 May renrpmen/ ica poe 16) See report “The Human Cost of Palm Oil” and “The Grext Palm Oi Scandal Labour Abuses Behind Big Brand Names”w ow veewwewveweweweweueHwuvuwwoveweUuHweHwuoaHweunHwHwe Ragin Daily Wage Calculation Real Daily Wage (IDR) Based on —_ Regional Minimum Wage (IDR) Central Sulawesi 60,000 (Province) 60,000 \\ | [cee Ralimanan 84,116 59,400 North Sumatra 80,480 78,600 Papua® 96,672 (Province) 61,295 Fact Sheet on Protection of Indonesian Palm Oil Labour 2018 Palm oil plantation does not apply overtime, whereas due to high yield target and threat of fine sanction?! workers are forced to work longer than the set time limit, which is an average of 12 hours per day.® For holidays, the company applies Kontanan work practices * in which wages are lower than regular working days and during harvest season it is mandatory for workers; these are violations of the Manpower Act no. 13/2003, which states work during holidays is calculated as overtime and overtime should not be forced. Manpower Office (Dinas Tenaga Kerja, Disnaker) up to the district level and companies are very detrimental for labours’ rights. c. Eradication of Independent Trade Unions Although Labour sights, including sights of palm oil plantation workers, to organize/to associate, 10 establish trade unions/labour union, has been regulated in Indonesian legislation, including Law no. 21/2000 on Trade Unions? ILO Convention No. 87 on Freedom of Association and Protection of the Right to Organize * and ILO Convention No. 98 on the Right to Oxganize and Conduct Collective Bargaining,2° with the implementing regulations stipulated in the Decree of the Minister of Manpower and Transmigration No. 16/MEN/2001 on the Procedures of Registration of trade unions/labour union 2” as well as reinforced by the legal rule of Constitutional Court Decision No. 115/PUU-VI1/2009 in essence, ‘that at hast 3 (hr) unions in one company with « menebership of 12% shall be entitled t0 partvipate in the Calketve Bargaining Agreement (Perianjian kerja Bersanca, PKB) negotiation process,” but in realty eradication of independent trade unions/labour union in palm oil plantations is still common practice, with patterns such as criminalization of union worker, layoffs, mutations, intimidation of family members of trade unions/labour union activists, intervention into trade unions/labour union internal affairs. 17) TuK Indonesia, G0 March 2015), Pan Perkehunan Kelana Seni di Sakovet Tengo. hps//rww.suk.orid/potre-perkebunan kel pa sawitci-sulawest-tengab/ 18) Amnesty International, The Great Palm Oil Scandal. Labour Abuses Behind Big Brand Names, 2016 19) RAN, OPPUK, ILRF, The Human Cost of Palm Oil, San Francisco, 2016 20) Labour payslip of palm cl plantation in Sorong, West Papua, 2016. 21) Appenis 22) Amnesty Incenational, The Great Pals Oil Scandal, Labour Abuses Behind Big Brand Names, 2016 23) Work on a holiday ofa Sunday i called ota in which calculation is bated on premium mukiplied by evo, Proc to wotk, the workers reeivea down payment of IDR 125,000, then after the end ofthe work caleulation is based oa result achieved ofthat da: 24) Law No. 21/2000, 25) was ratified by the Indonesian Presidential Deeece No. 83/1998 26) were ratified with Law No, 18/1956. 27) Decree af Ministry of Manpower and Transmigetion No, 16/2001, 28) In one of tansational palm ol plantations ia South Tapaaul, dhe independent labour union was isimiced by the company’ by oxlering plntasion head asian to sign alter of resignation and job transfer. The intimidation of eve company wae actly supported by the Manpower Office (Dinar Tay Keno, Diets) who delayed ieswance of registration leet and held a ssond veiication 3 month after pplication ws submitted bythe usion. Chronology of indepeesen labour union ban case documentation of OPPUK 2017,oe ~ouUUUNS evuwmvovwovuwvnwnw~ueHvoHwvHweHweUuHUHuHNHHNHNHNHeHwHus Fact Sheet on Protection of Indonesian Palm Oil Labour 2018 2. Absence of Special Rules for Workers/Labours of Palm Oil Plantations Guarantees of protection under Law no. 13/2003 is more appropriately implemented in the manufacturing sector, as it uses criteria appropriate to working conditions in the industry, for example: ‘working hours, workload (3,000 calories/day), work equipment, and availabilty of technology. Although Indonesia has been observing all cores of ILO conventions» there is no single specific convention on plantation» that has been ratified by Indonesia. In the national legislation, Indonesia still has no specific law on the protection of plantation workers in general, palm oil plantation workers, more specifically. ‘The practice of physical and mental exploitation occurring in palm oil plantations results in structural poverty inherited by labourers in generations (even until the 4th generation). The World Bank finds that large-scale plantations have had an impact on the loss of people's livelihoods and even increase poverty.*! Since the palm oil workers’ lives are isolated from the outside world, the State still has an important role to play in supervising and protecting labours as citiz I. CONCLUSION Against the weaknesses of Law Enforcement and the Absence of the Special Regulation of Oil Palm Plantation Workers/Labours, the Palm Oil Coalition concludes as follows 1. The Need for Ratification of ILO Convention No. 110/1958 And No. 184/2001 With regard co the issue of oil palm plantation workers, there are 2 (evo) ILO conventions that closely exist to protect the rights of oil palm workers ie. ILO Convention No. 110/1958 (Convention Concerning Conditions of Employment of Plantation Workers, Convention on the Working Conditions of Plantation Workers) and ILO Conventions (No. 184/2001 (Convention Concerning Sajety and Health in Aayiculture; Convention on Agricultural Safety ILO Convention No. 110/1958 was adopted by the 42nd International Labour Conference on June 24, 1958 in Geneva and was coming into force on January 22, 1960, in which in Article 1 point 1 stated, Plantation is coh agricultural management activity tht regulary employs wage workers, located in tropical or ub-topical areas that is primarily concerned with commercial or commercial production of commdites in the form of cafe, tea, sxgar, rubber, bananas, cocaa, cocannt, peanut, coton, tobaco, sical and bemp {bres citrus, pal, and ‘Pineapple. This Convention exclades small-scale fits or plantation estates for private consunption and doesnot employ ‘hired workers. ‘One of the highlights of ILO Convention No. 110/1958 is a safeguard against decent worker tights conceming remuneration, the convention encourages a collective bargaining agseement between trade unions as workers’ representatives, with employers or employers’ organizations, in setting minimum wages. “The wages must be paid in the form of money, and any payment of wages in the form of bonds, vouchers, ‘coupons, or other similar forms shall not be used. In addition, the protection of the right to health for workers may be undertaken in consultation with workers! and employers’ organizations; the competent authority shall encourage adequate provision of health services for plantation workers and members of theie families, Health services must have adequate personnel 29) Fight ILO core Conventions: Number 29/1930, Number 87/1948, Number 98/1949, Number 100/1951, Number 05/1957, ‘Number 111/1988, Number 138/1973 and Number 182/1999 531) ILO Convention No 110 Plantation, No 10 Minianum Age (Agviculute); No 11 Right of Associaton (Agriculture); No 12 Workmen's Compensation (Agriculture); No 25 Sickness Insurance (Agriculture); No 36 Old-Age Insurance (Agricutaee); No 38. Invalidity Insurance (Agaeulture); No 40 Survivors’ Insurance (Agreslure); No 64 Contracts of Employment (Indigenous Workers) No 101 Holidays wich Pay (\gricuture; No 107 Indigenous and Tbal Populations; Procol 110 to the Plnsstions Conventions, 31) Deininger, Klaus & —Byerlee, Derek. Raising Global Interest in Farmland. 2011 hp /siteresources worldbak.org/ INTARD/Re-sourees/ESW_Sept7-inal_inal patow evvnvvwv~vevwHw~HueuvuHHwHeUuaHwTUHeHUuHeHHwY Fact Sheet on Protection of Indonesian Palm Oil Labour 2018 who have sufficient skills. The authoritative institution shall take measures to stop or control the spread of infectious disease outbreaks if they occur. More specifically, there is ILO Convention No. 184/2001, adopted by the 89¢h international labour conference on June 21, 2001 in Geneva and was coming into force on 20 September 2003. More specifically, in protecting workers’ rights, ILO Convention No. 184/201 has considered national conditions and the general practice of the State, and after consultation with representative organizations of workers and employers, States Parties shall design, implement and review national policies concerning the agricultural occupational safety and security. This policy should aim to prevent workplace accidents by eliminating, minimizing, or controlling hazards in agricultural work environments. Employers are obliged to ensure adequate, proper, and comprehensive training and instruction on occupational safety and security as well as providing guidance and supervision for agricultural ‘workers, including information on hazards and risks related to their work. Employers are also obliged to take immediate action to stop activities when serious dangers arise that threaten security and safety, and to evacuate workers appropriately. In the ILO Convention No.184/2001 it is strictly stipulated that working hours, night hours, and rest periods for agricultural workers should be in accordance with national law or collective bargaining agreements. In addition, under national law and general practice, agricultural workers must hhave insurance or social security schemes that protect workers from possible occupational fatal injuries and diseases. ILO Convention No. 110/1958 and No. 148/2001 to date has not been ratified by the Government of Indonesia even though Indonesia has a large interest in agriculture including palm oil In fact, without having to be ratified, the government may adopt the contents/norms of the convention by drafting equivalent technical rules such as ministerial regulations. 2. The Need for Minister of Manpower Regulation which Specifically Stipulates the Protection of Labours in the Palm Oil Sector Pursuant to Law no. 13/2003 and regulatory practices in the Ministry of Manpower, the Regulation of the Minister of Manpower which Specifically Stipulates the Protection of Labouts in the Palm Oil Sector is not a necessity; in fact, the Minister of Manpower in carrying out his/her mandace and obligations and with regard to specific divisions/sectors has enacted several policies including: a. Decree of the Minister of Manpower and Transmigration No. Kep-234/Men/2003 concerning Working and Rest Time in Business Sector Energy and Mineral Resources in Specific Areas! bb. Regulation of the Minister of Manpower and Transmigration of the Republic of Indonesia Number Pee-15/ Men/VII/2005 concerning Working Time and Rest in Mining Business Sector in Specifie Operations Areas and © Regulation of the Minister of Manpower and Transmigration of the Republic of Indonesia Number Per-11/Men/VII/2010 concerning Working and Resting Time in The Fisheries Sector in Specific Operations Areas. 32) A company in the field of energy and mineral resources, including sport nmr campy engaged in certain operational ares, ‘may choose and determine one and/or some working hours in accordance with the operational needs of the company, with a certain period of work (as required) and comparisons of working and rest ime per period, shall be two to one (2:1) masimam of 14 (ourteen) ‘working days and a minimum of 5 (ive) days of tes, off (vide Article 2 paragraph (I) in conjunction with Article 5 paragraph 2) of Decree of Ministry of Manpower and Transmigration Kep-menakertrans No, Kep-234/Mea/2003) 33) Companies in the Geld of general mining, including supporting service companies that conduct activities in certain operating areas, may appl working time and rest period (WKY) as stipalated in Kepmenakentans. No, Kep-234/Men/2003; and/or, 'b. Working period of atleast 10 (en) consecutive weeks of work, with 2 (owo) weeks of consecutive test, and every 2 (0¥0) seeks in the period of wosk shall he given 1 (one) day of rest. Arscle 2 of Regulation of Minisery oF Manpower ancl “Transmigration No, Per-15/Men/VI1/2005)wow wu wevew~wwvwvwwvwewewvy Fact Sheet on Protection of Indonesian Palm Oil Labour 2018 mm. In essence, the periods of work stipulated under the Ministerial Regulation, have all exceeded the normal working time or there is addition of automatic overtine mork, with unified overtime wages (one package) and paid on a regular basis along with the wages of cach worker. Nevertheless, the rule thas become legal and legitimized after the existence of more specific subordinate rules (lex special). RECOMMENDATION Against the Weaknesses of Law Enforcement and the Absence of the Special Regulation on Palm Oil Workers/Labouss, the Coalition of Palm Oil proposes the following: 1. Against the Weakness of Law Enforcement, the Palm Oil Coalition recommends and encourages the following: 8. Government of Republic of Indonesia represented by the Ministry of Manpower in collaboration with Local Government undertake Education and ‘Training of Inspection and Implementation of Inspection of Workers/Labours of Palm Oil Plantations and Palm Oil Plantation Trade Union/Labour Union; b. ‘The Government represented by the Ministry of Manpower and the National Wage Council (DPN) at the central level, the Manpower Office and the Provincial/Regency/Municipal Wage Council shall immediately establish the Oil Palm Plantation Industry as the national superior sector and establish the Minimum Sectoral Wage of Oil Palm Plantation Industry; ©The Government to immediately ensure that the National Armed Forces (TNI)/National Police (POLRD) officers are not used by the company as part of the security of the company; 4. SP/SB undertakes cooperation and inter-sponsorship both within the scope of work area / company and within the scope of the City, Regency, Province to the National, in order to mobilize and nurture and maintain solidarity and solidity of the Palm Oil Workers / Workers strong; ©. National Commission on Violence Against Womea, the Indonesian Child Protection Commission, the Directorate General of Human Rights of the Ministry of Law and Human Rights of the Republic of Indonesia and the Ministry of Women Empowerment and Child Protection in order to synergize the intensive and comprehensive monitoring and action against the existence of child workers and female workers assisting their husbands/fathers who work in palm oil plantations without any protection. 2. Concerning the non-existing Special Regulation on Workers/Labours of Palm Oil Plantations, the Palm Oil Coalition recommends and encourages the following: a. Government of Indonesia represented by the Ministry of Manpower to ratify ILO Convention No. 110/1958 and No. 184/201, and or; b. Government of Indonesia represented by the Ministry of Manpower to stipulate a Special Regulation on Workers/Labours of Palm Oil Plantation in the form of Regulation of the Minister of Manpower (Permenaket) on the Protection of Palm Oil Plantation Workers, and oF; ©. Government of Indonesia represented by the Ministry of Manpower and the Ministry of Agriculture (cq. D.G. Plantation) to stipulate a Joint Ministerial Decree of Minister of Manpower and the Minister of Agriculture on the Protection of che Palm Oil Palm Workers/Labouts, and or, d. Government of Indonesia represented by the Ministry of Manpower and the Ministry of Agriculture (cq. D.G. Plantation) to stipulate Guidelines on the Implementation of Labour Inspection in the palm oil plantation sector.