Labour standards

The group takes seriously its duty to protect and respect the human rights of any person affected by its operations and is committed to adhering to all of the core conventions of the International Labour Organisation, as well as to Indonesian labour regulations and the provisions of the Modern Slavery Act 2015. The Fundamental ILO Conventions include: Freedom of Association (No. 87); Right to Organise and Collective Bargaining (No. 98); No Forced Labour (No. 29 & No. 105); Minimum Age (No. 138); Worst Forms of Child Labour (No. 182); Equal Remuneration (No. 100); No Discrimination (No. 111). The policy on human rights is displayed at every work site to communicate the group’s commitments in this regard to employees at every level.

REA is committed to providing a decent living wage (“DLW”) for all its employees, complying with the set national and regional wage standards and providing equal benefits for both male and female employees.

Salary and other benefits are the same for male and female employees carrying out the same type of work, receiving the same basic salary of Rp 3,179,673 per month and total allowances of Rp 3,021,918 per month. Harvesting employees receive additional incentives based on FFB production. The DLW calculation is based on the assumption that workers will receive a living wage in respect of normal working hours that meets their basic needs. The formula and analysis used in calculating the DLW is based on the RSPO Guidance on Calculating Prevailing Wages which applies to all employees, both permanent and temporary. Details of the DLW are shown below:

  Component of DLW Harvester Other roles*
   Male  Female**  Male  Female 
  Basic salary 3,179,673   N/A  3,179,673   3,179,673  
  Leave allowance1 -   N/A  -   -  
  Incentive (production and /or non-production) earned during standard working hours at normal working speed and exclude the overtime calculation. 723,130   N/A  -   -  
  The provision of housing facilities including water & electricity utilities2 900,000   N/A  900,000   900,000  
  Food rations / food commodities provided free of charge, e.g. rice allowance 150,000   N/A  150,000.000   150,000.000  
  Work transportation 655,000   N/A  655,000   655,000  
  Creche 140,200   N/A  140,200   140,200  
  Schools for employees children 759,343   N/A  759,343.0   759,343.0  
  Medical services on site (excludes health insurance) 417,375   N/A  417,375.0   417,375.0  
  Health insurance -   N/A  -   -  
  Total 6,924,721   N/A  6,201,591   6,201,591  

1 This benefit is provided to migrant employees to travel to their home country
2 Tool for calculating the value of housing in the Unit of Certification (UoC)
* This includes: pesticide & fertiliser application, manual upkeep, office administration and workshop employees
**There are currently no female harvester or workshop employees (mechanics or assistants), although female employees are eligible to apply for such roles, subject to meeting the requisite qualification and health requirements

REA strictly enforces its policy not to employ anyone under the age of 18 by checking the identity cards, school certificates and family registration information for each new employee. Employees are not required to deposit identity cards, insurance cards or money and are provided with clear terms of employment, which include pre-agreed notice periods. REA respects the right of employees and contract workers to form or join trade unions and bargain collectively, in accordance with national and international regulations.

The policy includes a commitment to promote diversity and equality in the workplace and states clearly that discrimination based on age, disability, ethnicity, gender, marital status, political opinion, race, religion or sexual orientation will not be tolerated. As at the end of 2020, 40 ethnicities and 5 religions were represented in the group’s workforce.

The group pays careful attention to the gender balance within its workforce. At the end of 2020, women accounted for 23 per cent of the group’s workforce, including 18% of the management team.

   2020 2019
    Number of
male staff
 Number of
female staff
 Number of
male staff
 Number of
female staff
  Directors 5   2   5   2  
  Management 58   13   57   13  
  Rest of workforce 6,087   1,804   6,201   1,812  
  Total 6,150   1,819   6,263   1,827  

There is a gender committee in place to drive and improve gender diversity in the workplace. The committee’s members are managers and employees with relevant knowledge and expertise to advise on and help implement the group’s policy with respect to equality and diversity. In collaboration with the human resources department, the committee considers relevant changes in regulatory guidance and recommends policy changes accordingly. Through sub-committees at the estates and in the mills, the committee seeks to ensure equality of opportunity and treatment at all levels in the group.

The group has committed to a code of conduct that was established in 2011 and embodies the group’s anti-bribery and corruption policy as well as whistleblowing procedures. The whistleblowing procedures implemented for employees in Indonesia where the majority of the workforce is based, is managed and facilitated by a professional independent third-party firm.

During 2020, the human resources department has overseen the implementation of measures to mitigate the risks of the Covid-19 pandemic in accordance with Indonesian government guidelines and regulations. Working with the group’s medical department, policies, health protocols including antibody and antigen testing, have been introduced for employees, contractors and other visitors to the group’s sites. To date, 0.2 per cent of the workforce is reported to have been infected with Covid-19, the majority with no serious symptoms as categorised by the Indonesian health department.