Palm oil

Respecting labour rights in the palm oil sector

Palm oil is used in half of all consumer goods worldwide, from food and cosmetics to cleaning products and biodiesel. Yet the people who produce it often remain invisible.

Millions of workers depend on palm oil plantations for their livelihoods. At the same time, labour rights violations remain a serious risk in many production areas.

CNV Internationaal works with local trade unions, companies, investors, producers and civil society partners to improve labour rights in palm oil supply chains. Our network of local trade unions provides direct insight into workplace realities.

We help companies and investors identify and mitigate risks, measure progress, and drive meaningful change. Through social dialogue, worker based data and practical collaboration, we help turn sustainability commitments into real improvements for workers.

What is happening? Labour rights risks in palm oil

Despite the scale and profitability of the sector, many workers do not receive a fair share of its benefits. CNV Internationaal's Fair Work Monitor found that most plantation workers do not earn a living wage. Labour rights risks are common across palm oil plantations and mills. In Indonesia, fewer than 5% of workers are union members.

Their poor working conditions increase the risk of exploitation, income insecurity and forced labour.

• Occupational health and safety hazards
• Wages below a living wage
• Gender discrimination and gender based violence
• Child labour
• Forced labour
• Informal work without a written contract
• Limited freedom of association
• Limited access to collective bargaining agreements

Palm oil facts and figures

Palm oil is one of the world’s most widely used vegetable oils. Its global supply chain connects millions of workers, smallholder farmers, companies and consumers.

1.8 billion US dollars

In 2025, the Netherlands was the second highest palm oil importer worldwide, with imports worth about 1.8 billion US dollars.

85%
Indonesia and Malaysia together produce approximately 85% of global palm oil supply.
Colombia is the largest palm oil producer outside Southeast Asia.

3 million

Indonesia’s palm oil sector provides employment for approximately 3 million people, according to the United Nations Development Programme (UNDP), it contributes significantly to national economic development. Beyond direct employment, millions of smallholder farmers and their families depend on palm oil cultivation as an important source of income

Our approach

CNV Internationaal believes every worker should be able to work safely, earn a living wage and have a voice in decisions that affect their livelihood.

That is why we focus on strengthening worker representation, social dialogue and freedom of association throughout the palm oil sector.

Through our local trade union network, we bring workers’ perspectives into company decision making and supply chain due diligence. Together with trade unions, employers and other partners, we identify risks, develop practical solutions and support lasting improvements.

Focus areas

• Strengthening worker representation
• Promoting freedom of association
• Supporting social dialogue between workers and employers
• Improving access to collective bargaining
• Using worker based data to identify risks and monitor progress

Our impact

CNV Internationaal works alongside trade unions and workers in Indonesia to ensure that workers have a stronger voice in the palm oil supply chain. Last year our programmes reached these measurable results for workers, unions and responsible businesses.

60,000+ HUKATAN members across 15 provinces in Indonesia.

42 Companies and trade unions supported in the Siak Pelalawan landscape.

22 Functioning bipartite dialogue structures established.

16 Gender committees established.

12,000 Workers and family members reached in Sumatra.

25 Palm oil companies covered by a labour rights baseline in Central Kalimantan.

35,000+ Permanent workers included in the Mosaik baseline.

5 Collective bargaining agreements concluded through the Mosaik Initiative.

The impact of our programmes in Indonesia

Workers’ rights in EU - Indonesia trade negotiations

Throughout the Comprehensive Economic Partnership Agreement (CEPA) negociations. CNV Internationaal worked to keep the protection of workers’ rights at the forefront.

As trade and palm oil exports to Europe are expected to increase under the agreement, economic growth must go hand in hand with decent work, respect for labour rights and freedom of association.

CNV Internationaal supported Indonesian trade unions in their engagement with policymakers, helping them advocate for stronger labour protections and a greater voice for workers.