N. Sumatra plantations produce generations of poor workers

Ridwan Max Sijabat, The Jakarta Post, Pematang Siantar, North Sumatra

North Sumatra has long been known for its large oil palm, cocoa and rubber plantations, but they have contributed little to the local people's welfare over the centuries.

Bedjo Kirnadi, a 47-year-old worker of state-owned PT Perkebunan Nusantara IV (PTPN IV), raised his eyebrows when asked what changes he had seen during his 24 years at the palm oil plantation.

In a sad tone, he shared his long story, that his family had achieved nothing over the generations and that he could not afford to send his three children to school despite the fact that his wife has worked for 15 years in the same company to help support their family.

Recalling his initial monthly salary of Rp 350 (3 cents) in 1980, he said conditions were better then.

"Formerly, all workers received the nine basic commodities, including rice, sugar, palm oil, kerosene and cloth besides their monthly salaries. But now, I am paid Rp 350,000 per month and my wife Rp 325,000 and that's all," he told The Jakarta Post at his small hut in the Andarasi housing area recently.

Jaiman, 54, who has been employed for almost 35 years at the state-owned oil palm plantation PTPN II in Tanjongmorawa, 12 kilometers south of Medan, said that since January 2002 he had been paid Rp 350,000 monthly and it was far from enough to support his family of eight.

"I have two children at a public junior high school while four others are employed as contract workers with the company. My wife sells basic commodities at the local market to help my family survive the economic hardships of daily life," he said in his house provided by the company at the plantation on Monday.

Jaiman expressed deep concern over the poor labor conditions at the plantation, saying none of the low-income workers were able to improve their welfare under the current conditions.

"Thousands of workers will remain poor, both economically and intellectually because under the current remuneration system, they are unable to lead a better life or to send their children to university in an attempt to make changes in their life," he said.

The chairman of the labor union at the plantation (SPBUN), Serta Ginting, said the labor union in the province had filed a lawsuit against those companies that were still refusing to pay some of their workers the regional minimum wage set by the government and had not registered them in social security programs.

He said that of the more than 100,000 workers employed in four state-owned palm oil plantations in the province, 40,000, or some 40 percent, were not registered to receive the company benefits package.

"According to Law No. 3/1992, social security programs are mandatory and the workers have a right to protection, both from the government and their management," he said.

He added that many companies in the province did not register all their workers in an attempt to avoid paying more premiums to PT Jamsostek, the state-owned company in charge of all company social security/benefits programs.

Pengarapen Sinulingga, chief of the state-owned PT Jamsostek branch in Pematang Siantar, also expressed deep concern over the poor labor conditions in state-owned plantations in the province, saying his company had urged the local administration and the manpower and transmigration ministry to look into the violations.

"We have contacted the local manpower office to closely monitor the enforcement of the new labor law and the social security law in the plantations," he said, adding that a larger part of the plantations' workers were not registered with Jamsostek.

The director of PTPN IV's general affairs and human resources, A. Lubis, defended the existing remuneration system which he said was better that the minimum wage set by the government.

He said the management could not improve the workers' social welfare due to the rampant theft of palm oil kernels over the last five years that had caused tens of billions of rupiah in annual financial losses.

Director of Labor Inspection at the Ministry of Manpower and Transmigration Maruddin Simanihuruk said his ministry had urged the government to review the poor labor conditions that had sparked strong criticism from the House of Representatives and labor unions.

"The government has to rectify the poor labor conditions and improve the remuneration system in a bid to set a good example for private companies," he said.