Tripartite Dialogue for Promoting Effective Implementation of Collective Bargaining in Oil Palm Sector in Medan

Objectives

The overall objective of the tripartite dialogue is to promote good-faith bargaining among social partners and key stakeholders, and to stimulate effective social dialogue on the freedom of association and collective bargaining in Medan’s oil palm sector. This will serve as a follow-up to the first social dialogue conducted by the ILO in 2017, as well as to the development of the joint sustainable palm oil forum in North Sumatra.

More specifically, the dialogue aims to:

• facilitate common understanding and knowledge of basic principles of freedom of association and collective bargaining among participants;
• identify common goals for participants in order to ensure effective implementation of freedom of association and collective bargaining;
• identify action areas and priorities to promote bipartite cooperation for effective implementation of collective bargaining; and
• develop and improve redressal mechanisms for labour related issues in plantations in North Sumatra.

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 its constituents, including the private sector, trade unions and others relevant stakeholders, at both national and provincial levels. Particular attention is given to improving working conditions, occupational safety and health (OSH), and social dialogue through enhanced collective bargaining, which are crucial for ensuring equitable economic growth in the palm oil industry (as explained in Annex 1).

In order to advance social dialogue in the sector, the ILO – in collaboration with the Government of Indonesia, GAPKI and the union network in Indonesia’s palm oil sector – will conduct a tripartite dialogue for promoting effective implementation of collective bargaining. The dialogue will serve as a follow-up to the first multi-stakeholder forum conducted on 12 October 2017 and the preparation meeting conducted on 6 June 2018.