PepsiCo Linked to Exploitation and Child Labor in Indonesia

A report has linked PepsiCo’s Indonesian affiliate, Indofood, to “a disturbing system of abuse” on its palm oil plantations including child labor, worker exploitation, unethical wages and dangerous working conditions according to Reuters Wednesday.

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The joint report found that many long-term workers were classified as temporary, leaving them with no job security and earning far less than permanent employees.

Women were rarely given permanent positions and were given some of the most toxic jobs, such as applying highly hazardous pesticides without adequate protection.

The company was accused of ignoring child labor—13-year-old children were spotted helping with harvesting on the plantations.

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At one of the two plantations, workers received less than the local minimum wage of US$150 a month for permanent workers the report said.

Often harvesters would bring their wives and children to work on the plantations because of a quota system that required them to collect a certain amount before they could be paid.

The report was based on a two-month investigation that interviewed 41 workers from two plantations on the Indonesian island of Sumatra. It was jointly released by the Rainforest Action Network, the International Labor Rights Forum and and Indonesian labor rights group, OPPUK.

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"PepsiCo must require that Indofood work rapidly to investigate and address the labor violations outlined in this report," said Emma Lierley from the RAN.

"The findings are unfortunately indicative of all-too-common systems of exploitation on palm oil plantations, and the industry is rife with such labor rights and human rights violations," Lierley said.

PepsiCo said that it was taking the allegations seriously. Indofood said that it complied with all Indonesian laws and regulations according to the report.

Palm oil is commonly used in soap, cosmetics and food spreads. It has been a major driver of growth for Southeast Asia's largest economy but has been regularly linked to the destruction of rain forests and wildlife habitats, as well as displacement of Indigenous communities.