Objectives

The overall objective of the training workshops is to enhance the institutional capacity of social partners in formulating effective and inclusive CBAs. They will focus on improving participants’ understanding and knowledge of good-faith bargaining, and enhancing their capacity to negotiate and formulate effective collective bargaining agreements (CBAs). The training will be aimed at equipping all participants to have:

• a robust understanding of global supply chains in the palm oil sector, and their relevance to the respective companies;
• a better understanding of ILO standards and national regulation on collective bargaining and CBAs;
• access to information on good practices on collective bargaining;
• a clear understanding of different criteria for good-faith bargaining, and challenges related to inclusive and well-informed collective bargaining; and
• Strengthened capacity to negotiate and formulate effective CBAs.

Background

With the support of the Government of Indonesia and social partners, the ILO undertook a diagnostic process on working conditions in the palm oil sector in March 2015. Based on the results of the diagnostic process, discussed in a tripartite setting in August 2015, the constituents agreed on a national plan of action on the promotion of decent work on oil palm plantations. The action plan is organized around six areas: (i) Employment status; (ii) Wages; (iii) Social dialogue; (iv) Occupational safety and health; (v) Child labour; and (vi) Labour inspection. There was a consensus that these areas required particular attention in order to strengthen Indonesia’s economic advantage in the palm oil sector in a sustainable way, and to improve working and living conditions of plantation workers and the performance of the sector.

As a follow up to this, the ILO has been actively engaging with key constituents, including the private sector, trade unions and others relevant stakeholders, at both national and provincial levels. To facilitate the development of project’s implementation strategy, the ILO will organize tripartite workshops for discussion and dialogue in order to identify action areas, priorities and policy measures in targeted provinces and palm oil plantations. Particular attention will be given to improving working conditions and social dialogue through enhanced collective bargaining, which is crucial for ensuring equitable economic growth in the palm oil industry.

In this regard, the ILO’s projects on ‘Promoting decent work in palm oil plantations’ as well as the ‘Labour Standards in Global Supply Chains (LSGSC)’ will conduct capacity building workshops on negotiating and formulating Collective Bargaining Agreements (CBA) to trade unions and management representatives from selected plantation companies in the province of North Sumatra. The project aims to organize training workshops on effective collective bargaining for at least 5 companies (each company will sent 2 representative from management and 2 representative from trade/workers union, and these workshops will be implemented as per the following terms of reference.