4-5 minute read
“We’re happy and more motivated,” said Leni, a woman working at Indonesian palm oil plantation PT. Gruti Lestari Pratama (GLP) — who, along with 36 of her female colleagues — has been promoted from being casual to a permanent worker.
“As casual workers, our earning was not adequate, as we only received around Rp 1,500,000 ($104) per month. After being promoted to permanent workers, we received Rp 2,800,000 ($195) per month,” she added.
Leni and her female colleagues work in the oil palm plantations of PT. GLP, a palm oil company in North Sumatra, and say the promotion has had a significant effect on their lives.
It is estimated that Indonesia and Malaysia produce 85 percent of the estimated global $65 billion supply of palm oil. In Indonesia alone, 16.2 million people depend on palm oil cultivation for their livelihoods.
In Indonesian palm oil plantations, men typically work as harvesters of palm fruit, while women are given the work of fertiliser application, pesticide spraying and loose fruit collection, thus playing an important role in plantation productivity. However, women plantation workers are often employed on a casual status and are rarely given permanent employment status. This can lead to significant disparities in working conditions between men and women.
Consequences
Incentive for business
There is an incentive for businesses as well to absorb their casual workers into their permanent workforce.
“For the company after casual workers are promoted to permanent workers, their productivity increases, which consequently increases company productivity with a lower cost,” said Mr. Suwardi, Plantation Manager at PT. GLP.
Mr. Tengku Badrun, Production and Agronomy Manager at PT. GLP, added that “the company is committed to providing equal opportunities in employment and career advancement to both men and women. In the future, we will pay more attention to fulfilling the rights of women workers to incentivise good performance. We also ask our partners to work together and support us to make this happen.”
All partners hope this progress can be replicated elsewhere in the industry. Earthworm Foundation will continue to work with its members GAR and Nestlé and their suppliers, to replicate and scale such positive examples of success in the Indonesian palm oil industry.
“What PT. GLP is doing, as a part of our supply chain, is a good example that other companies can follow to improve the welfare of workers, especially for women workers and of course for the sustainability of the company's business. All parties must support these efforts,” shares Fauzan Kurniawan, Head of Supplier Engagement at GAR.
