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From contract to permanent employment – fighting for workers in the supply chain

23 June, 2016Indonesian pulp and paper union FSP2KI has successfully reinstated dismissed contract workers, as well as turning them into directly employed permanent employees.

IndustriALL affiliate FSP2KI represents 21,000 workers in the pulp and paper industry in Indonesia, including workers in Kaliguma’s and Tanjungenim Lestari’s supply chains.

Contract company West Point Security Agency supplies Tanjungenim Lestari with security workers in the Lampung port. In May 2016, the company fired eight workers for joining the Port Tarahan Lampung Union (SPTT TL), affiliated to the FSP2KI. A further four workers were transferred to different positions.

According to West Point management, security workers had no right to join the SPTT TL, a union which organizes both port and security workers.

The FSP2KI launched a rally on 15 June, calling for the reinstatement of the dismissed security workers. Following a meeting with the management of Kaliguma which manages the Lampung port (for Tanjungenim Lestari), all 12 workers were reinstated and are now employed directly by PT. Kaliguma.

Muhammad Ikhsan Prajarani, FSP2KI general secretary, said that the FSP2KI's aims to unionize all workers in the supply chains of the pulp and paper industry in Indonesia:

“We will continue to fight for the workers' human and labour rights, improve their working conditions and their human dignity. Our organizing campaigns will never stop."

On 8 June, the FSP2KI concluded negotiations at Pindo Deli Pulp and Paper Mills in Karawang, Indonesia. Pindo Deli employs 1,000 contract workers and 5,000 permanent workers. The new collective agreement guarantees the same wages for the directly employed contract workers, working side by side with the permanent ones. As a result of the negotiations the contract workers are now joining the union, and the new monthly salary of 3.8 million Rupiah (US$300) applies to all workers.

Another 6,000 contract workers employed by six different companies are working at Pindo Deli mills. They are on two-year contracts even though some have worked for longer periods at Pindo Deli worksites. The FSP2KI has been helping them to form a union of their own, and 150 of the contract workers are now joining a union.