Members of the Indonesian trade union KSPI have won a groundbreaking just transition clause in their collective bargaining agreement with PT AEL Indonesia, a multinational mining and chemical company that operates in East Kalimantan (East Kutai, West Kutai, and Tenggarong) and South Kalimantan. The company directly employs around 200 workers.
A seat at the table
The union’s victory ensures the establishment of a Bipartite and Just Transition Committee, giving workers a voice in the company’s transition to a net-zero emissions pathway.
With this agreement, workers now have a formal communication and consultation platform to help shape sustainable industrial relations that support both business growth and worker welfare.
By negotiating with management, the union will be able to jointly plan, oversee, and ensure a fair transition process—one that takes into account workers’ interests and livelihoods. The agreement also ensures that the company will cover all costs associated with the Just Transition Committee.
The impact of this clause will extend to other company agreements, setting a model for workers who have fought to be prioritised in the transition to renewable energy.
Why workers need a just transition
During negotiations, the union argued that establishing this committee was critical, as Indonesia’s national energy transition plan will significantly reduce coal mining operations. This shift will impact not just the company, but also workers and their families. A dedicated bipartite platform for dialogue between management and worker representatives is essential to anticipate and mitigate these effects.
No one left behind
This win is a clear outcome of the international solidarity efforts between the Australian union movement, global unions, and Indonesian unions. Through our climate justice program, Union Aid Abroad–APHEDA is working with Indonesian unions to secure just transition clauses in their collective agreements. This effort involves raising awareness among delegates and union members about Indonesia’s transition to renewable energy and the profound impact it will have on workers.
Become an APHEDA member today to ensure no worker is left behind in the fight for climate justice!