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 the core conventions of the International Labour Organisation’s Fundamental Principles and Rights at Work, as well as 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 3,944,508 per month and total allowances of Rp 3,944,508 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:

IDR
Component of DLW Harvester Other roles*
Male Female** Male Female
Basic salary 3,394,514 N/A 3,394,514 3,394,514
Leave allowance1 N/A
Incentive (production and /or non-production) earned during standard working hours at normal working speed and exclude the overtime calculation. 775,700 N/A
The provision of housing facilities including water & electricity utilities2 936,000 N/A 936,000 936,000
Food rations / food commodities provided free of charge, e.g. rice allowance 150,000 N/A 150,000 150,000
Work transportation 691,808 N/A 691,808 691,808
Creche 148,096 N/A 148,096 148,096
Schools for employees children 802,048 N/A 802,048 802,048
Medical services on site (excludes health insurance) 440,856 N/A 440,856 440,856
Health insurance N/A
Total 7,339,022 N/A 6,563,322 6,563,322
* These roles cover: fertiliser and pesticide 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
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)

Salary and remuneration of female employees compared to male employees by employee category and location

Category East Kalimantan Kutai Kartanegara & Kutai Timur Regency East Kalimantan Balikpapan United Kingdom
Basic Salary1 Annual Remuneration2 Basic Salary1 Annual Remuneration2 Basic Salary1 Annual Remuneration2
Excutive Management N/A3 N/A3 100% 100% 100% 100%
Senior Management 100% 100% 100% 100% N/A3 N/A3
Middle Management 100% 100% 100% 100% N/A3 N/A3
Junior Management 100% 100% 100% 100% N/A3 N/A3
Non-Management 100% 100% 100% 100% N/A3 N/A3
Mill Workers 100% 100% N/A3 N/A3 N/A3 N/A3
Plantation Workers 100% 100% N/A3 N/A3 N/A3 N/A3
1 Basic salary: fixed, minimum amount paid to an employee for performing their duties, excluding any additional remuneration, such as payments for overtime or bonuses
2 Remuneration: basic salary plus additional amounts paid to an employee. Examples of additional amounts include those based on years of service, bonuses including cash or other benefits, overtime, time in lieu, and any additional allowances, such as transportation, living and childcare allowances
3 The job function for these categories is not applicable at these locations

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.

This 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 of the end of 2023, 40 ethnicities and five religions were represented in the group’s workforce.

The group pays careful attention to the gender balance within its workforce. At the end of 2023, female employees accounted for 25 per cent of the group’s workforce, including 20 per cent of the management team.

Employees 2022 2021
Male Female Male Female
Directors 5 2 5 2
Management 75 20 64 19
Rest of workforce 6,859 2,177 6,232 1,893
Total 6,939 2,199 6,301 1,914

In furtherance of the group’s policy on human rights, the group has established a local committee focusing on DEI. The DEI committee’s members comprise the head of human resources, senior managers and employees with relevant knowledge and expertise to advise on and help implement the group’s policies that aim to ensure equality of opportunity and treatment at all levels in the group.

A code of conduct established in 2011 embodies the group’s anti-bribery and corruption policy as well as whistleblowing procedures. The whistleblowing procedure implemented for employees in Indonesia, where the majority of the workforce is based, is managed and facilitated by a professional independent third party firm. Matters warranting investigation are brought to the attention of the REA Kaltim audit committee which has primary responsibility for oversight of issues arising and any follow up action necessary in respect of the group’s code of conduct. As required, such matters are referred to the group audit committee.

The final phase of the human resources information management system, that was introduced in 2021, went live at the start of 2023 offering improvements and efficiencies for the human resource function across the group.