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Indonesia: - PT Agro Kati Lama Closed
Commodity: Palm
Reported on 30/11/2017 by Sawit Watch / 11.11.11 [direct contact with SIPEF]

Issues raised:

Allegations of workers’ rights violations including:

  • The daily casual workers are paid below the minimum wage set out by the Musi Rawas District Government;
  • The daily casual workers are not protected and no remedy available for work accidents;
  • The daily casual workers are not equipped with personal protection equipment [PPE] and are not equipped with working tools; 
  • The daily casual workers did not receive festive allowance in accordance with the regulation; 
  • The daily casual workers, who are hired through the third party, do not get a pay slip. The amount written in the payment receipt is without formal stamp and without the name of the party who rendered the payment.

Actions taken:

  • A grievance linked to Company operations at PT AKL was filed in November 2017;
  • PT AKL is a new development area, which has gone through the RSPO New Planting Procedure but is not yet RSPO certified, due to the process of issuing an HGU not yet being completed. As required by RSPO, SIPEF has proceeded following the principles of Free, Prior and Informed Consent;
  • The original grievances were initiated in 2017 by 11.11.11 (Belgium-based), with local representative NGO Sawit Watch as the grievance raiser. Over the years, SIPEF has worked to address these grievances and met with Sawit Watch several times to update on progress. Two of the original three grievances were “closed” with the issue related to labour which was a topic for the engagement with grievance parties, Sawit Watch representing the local grievance raiser labor union Serikat Buruh Sawit Sejatehara (SBSS);
  • In early 2020, Transnational Palm Oil Labour Solidarity (TPOLS) also engaged on this grievance reutilizing the allegations originally raised. Many attempts have been made to engage with TPOLS on the matters and to follow up on the details. TPOLS didn’t engage nor did they provide any details on matters raised. Although the original grievance raisers followed up on the engagement and raised a complaint with the RSPO;
  • In March 2021 Sawit Watch and SBSS raised the complaint with the Complaints Panel of the RSPO;
    The RSPO asked both parties if they would be willing to go through a mediation process under the Dispute Facility of the RSPO. Both parties agreed to start these proceedings and in August 2021 parties agreed upon a mediator;
  • The mediation focused the grievances raised which were related to recruitment process and part-time workers, minimum wages, payment of bonus and payment slips and PPE;
  • From the 12th of October until the 17th of December 2021 virtual meetings took place to discuss the grievance, facilitated by the mediator. Face to Face meetings took place in March 2022. One at PT AKL and one in Bogor;
  • On the 11th of May 2022 the mediation resulted in an signed agreement, addressing outstanding matters and parties agreed on finalisation of the mediation and closure of the grievance.
Updated on 23/05/2022
Papua New Guinea: - HOPL Closed
Commodity: Palm
Reported on 25/05/2021 by "Soi Affected Area Representatives"

Issues raised:

  • Environmental Impact due to Smallholder Fresh Fruit Bunches left on Smallholder Blocks in Q1 2019:
  • Environmental Impact by Smallholder FFB decomposing on Smallholder blocks
  • Allegation of impacting watercourses and air quality

Actions taken:

  • May 25th 2021: The first initial communication and report received from Soi Affected Area Representatives
  • June 1st 2021: Responded to the Stakeholder with the request for engagement to understand perspective of the Representative (see background statement at the link below)
  • July 6th 2021: Representative sent a reply with allegation, claim and a report (see background statement at the link below)
  • July 9th 2021: Email correspondence between HOPL team and Representative to arrange for a meeting to understand perspective.
  • July 15th 2021: HOPL replied by letter to Representative requesting to follow process
  • July 15th 2021: HOPL will follow up on process by proceeding to review matters with all involved Stakeholders (including Smallholders in Soi area and Conservation and Environment Protection Authority).
  • Second half of 2021: HOPL engaged with its stakeholders and relevant authorities to review matters indicated.
  • January 6th 2022: HOPL received the information from the relevant Government Authorities that matters raised are not substantiated by evidence.
  • February 17th 2022: HOPL is closing the grievance case. 


Updated on 17/02/2022

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