Indonesia: A long road to fair collective bargaining

A collective agreement must be negotiated at company level, with the participation of all active trade unions. Only then will employees be properly represented

Tohonan, Chair of Hukatan North Sumatra

The struggle for recognition

For years, Hukatan campaigned for a fairer collective bargaining process. The trade union sent letters, held talks with management, organised industrial action and continued to draw attention to workers’ rights.

Their position was strengthened when the Indonesian Ministry of Labour confirmed that the existing collective agreement structure did not meet the legal requirements for employee representation at company level. Nevertheless, it took years before practices changed.

The breakthrough

In 2023, things finally started to move. For the first time, PT BSP agreed to negotiate directly with Hukatan and other trade unions that were actually active on the plantations.

This meant more than just a new negotiating table. It meant that workers finally had a direct say in decisions affecting their day-to-day work and income.

Rather than completely rejecting the existing collective agreement, Hukatan opted for a constructive approach. Positive provisions were retained, whilst new improvements were added.

For example, a rice allowance was linked to local market prices in Kisaran, providing workers with better protection against the rising cost of living. In addition, provisions on occupational health and safety were included for the first time.

In the past, employees often had to buy their own personal protective equipment. Now it is the employer’s responsibility to provide it

Tohonan, Chair of Hukatan North Sumatra

Results

The new collective agreement led to tangible improvements for approximately 3.000 workers:

greater worker participation in collective agreement negotiations;
improved terms and conditions of employment, including an adjusted rice allowance;
clear agreements on health and safety at work;
access to personal protective equipment provided by the employer;
strengthening of the social dialogue between workers and management.

Hukatan’s story shows that change takes time, but is possible when workers organise themselves and continue to insist on their rights. What began as a struggle against a closed bargaining system developed into a process in which workers were genuinely heard.

For the thousands of workers at PT BSP, this change is not just about a new collective agreement. It is about recognition, a say in matters and the opportunity to have a say in their own future at work.