Trade union capacity building

Indonesian trade unions enhance their capacity to promote collective bargaining and dispute resolution in palm oil sector

The ILO through its Advancing Workers’ Rights in Indonesia and Malaysia’s Palm Oil Sector project enhances the capacity of trainers and branch leaders of the national trade union confederations and their federations to improve conditions of work and promote social dialogue for dispute resolution.

News | Pontianak, West Kalimantan, Indonesia | 27 June 2022
The ILO, with support from the United States Department of State, the Bureau of Democracy, Human Rights and Labour (USDRL), conducted a three-day training on freedom of association and collective bargaining in Pontianak, West Kalimantan, from 14-17 June 2022. The training aimed to upgrade the capacity, knowledge and skills of trainers and branch leaders of the national trade union confederations and their federations to improve conditions of work, share in gains of growth and promote the social dialogue for dispute resolution.

The training of trade union confederations on palm oil sector in Pontianak, West Kalimantan
The training was attended by 28 trade unionists from four national trade union confederations and their affiliated federations related to palm oil. During the training, the participants learnt about ILO principles and standards related to collective bargaining, particularly in the palm oil sector, negotiation approaches and skills linked to wages and working condition agreement, gender equality and dispute prevention as well as resolution for win-win situation.

Collective bargaining is not only about negotiating wages, but it is also a form of voluntary collective dispute resolution system conducted by the parties themselves and can help reach mutually agreeable solutions between employers and trade unions while respecting each other needs."

Arun Kumar, Social Dialogue and Collective bargaining Specialist of the ILO Regional Office for Asia and the Pacific
Using a participatory and practical approach, participants practiced mock negotiations, analysed case studies individually and learnt the dynamics of working in groups which also led to useful sharing of experiences with the other participants. The training concluded with the development of a follow-up training programme for their local trade union members focusing on strengthening collective bargaining preparation, developing draft charter of demands and conducting negotiations for collective agreements.

Arun Kumar, Social Dialogue and Collective bargaining Specialist at the ILO Regional Office for Asia and the Pacific, emphasised the importance of having relevant data and role of workers in collecting relevant information at the workplaces that can help in negotiating productivity linked wage agreements. “Collective bargaining is not only about negotiating wages, but it is also a form of voluntary collective dispute resolution system conducted by the parties themselves and can help reach mutually agreeable solutions between employers and trade unions while respecting each other needs,” he said.

Meanwhile, Lusiani Julia, ILO´s Senior Programme Officer, highlighted the importance of paying attention to the needs of women workers while formulating charter of demands and in negotiations, including representation of women in the negotiating teams. Lusiani reminded that Indonesia’s economy is growing, yet this growth has not translated adequately into equal opportunities and decent work for women – who are major part of the work force in the country and in some sectors, including palm oil sector.

In general, Indonesian women earn 23 percent less than men and it appears that the education alone does not close the gender pay gap. Active measures are needed for removing pay discrimination that will benefit not just women and their families, but also the employers and the economy."

Lusiani Julia, ILO´s Senior Programme Officer
“In general, Indonesian women earn 23 percent less than men and it appears that the education alone does not close the gender pay gap. Active measures are needed for removing pay discrimination that will benefit not just women and their families, but also the employers and the economy,” Lusi added.

To reduce the existing gender pay gap, Yunirwan Gah, National Project Coordinator of the ILO’s Advancing Workers’ Rights in Indonesia and Malaysia’s Palm Oil Sector project, pointed out that the trade union network that has been formed in the palm oil sector, Indonesian Trade Union Palm Oil Network (JAPBUSI), can play a major role in not only improving industrial relations at the palm oil plantations but also promoting for pay transparency.

I wish that the training will be followed by various follow up activities to increase the protection of workers’ rights through a more effective promotion of freedom of association and collective bargaining."

Nursanna Marpaung, the Head of the Trade Union Federation of Forestry, General Industry, Timber, Agriculture and Plantation (F-HUKATAN)
The training programme was appraised by the participants who were actively involved in group discussions. They also shared lessons learned from various collective bargaining processes and agreements at various levels. Nursanna Marpaung, the Head of the Trade Union Federation of Forestry, General Industry, Timber, Agriculture and Plantation (F-HUKATAN) and also the Executive Secretary of JAPBUSI, stated that the training had given a new perspective for trade unionists for enhancing the current practices of collective bargaining in the palm oil sector.

“I wish that the training will be followed by various follow up activities to increase the protection of workers’ rights through a more effective promotion of freedom of association and collective bargaining,” she said.

The participating trade unions were the following:
  • Confederation of All Indonesian Trade Union (KSBSI) and its six federations: Trade Union Federation of Forestry, General Industry, Timber, Agriculture and Plantation (F-HUKATAN), Trade Union Federation of Food, Beverage, Tourism, Restaurant, Hotel and Tobacco (FSB KAMIPARHO), Trade Union Federation of Commercial Trade, Informatics, Finance, Banking and multiple industries (FSB NIKEUBA), Federation of Construction, General and Informal (FKUI), Federation of Public Transport Industry and Freight (FTA) and Federation of Metal and Electronic (F-LOMENIK).
  • Confederation of All Indonesian Workers’ Union (KSPSI) and its two federations: Trade Union Federation of Agriculture and Plantation – All Indonesian Trade Union (FSPPP SPSI) and the Federation of Trade and Banking (FNIBA).
  • Confederation of All Indonesian Workers’ Union-CAITU (KSPSI-CAITU) and its Trade Union Federation of Agriculture and Plantation (FSPPP KSPSI CAITU).
  • Indonesian Trade Union Confederation (KSPI) and its Federation of Indonesian Metal Trade Union (FSPMI).
  • Confederation of Indonesian Moslem Trade Union (K-Sarbumusi) and its Federation of Agriculture, Plantation, Livestock and Fisheries and Forestry (FP4K).