By Mónica Garzaro Scott
Palm oil production began in Guatemala in the 1970s, but the export process became more dynamic at the beginning of the new century. Since then, production has grown enormously, as its use has expanded to various sectors such as the food industry, cosmetics, personal care products, and so on, as this vegetable oil is comparatively cheaper.
Palm oil production has also benefited from the Association Agreement between Europe and Central America, which facilitated exports to several European countries. The Netherlands is the largest importer, although Spain, Germany, and Italy also receive Guatemalan palm oil production. Production has increased from 241,000 metric tons in 2010 to 920,000 metric tons in 2023. Guatemala is now the sixth-largest producer of palm oil worldwide.
This rapid growth has led to significant social problems such as deforestation, the loss of community lands, and river pollution. Above all, there is a lack of compliance with labor laws for agricultural workers by some palm oil industries in Guatemala.
Many indigenous peasant organizations in the country have spoken out to denounce the terrible working conditions of these agricultural workers.
The vast majority of workers are agricultural workers, performing intensive labor and are exposed to adverse weather conditions, which presents several health risks. However, these risks are not adequately addressed, as many agricultural workers lack social security, or their low wages prevent them from accessing private medical care. The workdays are long and without breaks or overtime pay, and it is in this sector that the palm oil industry often uses outsourcing and informal labor, resulting in unpaid labor benefits or almost no labor representation.
Much of the piecework carried out in palm oil production is carried out in such deplorable conditions that they fall far short of providing the decent working conditions recommended by the ILO for everyone, which would allow for the achievement of the United Nations Sustainable Development Goals (SDGs).
One of the organizations dedicated to supporting palm oil workers is the National Council for Displaced Persons of Guatemala (CONDEG), which has been fighting to improve the working conditions of these workers. They have made several efforts to denounce this situation nationally and internationally.
Among these complaints, they have gone to organizations such as the RSPO (Roundtable on Sustainable Palm Oil (RSPO), the global certifier of palm oil production, where they have filed three complaints for unjustified dismissals. However, the certifier has dismissed the complaints for not finding sufficient evidence. But this is understandable when one of the main problems is the outsourcing of workers, who often lack written contracts and/or do not know the exact name of the contracting company.
The greatest violations of labor rights occur in the “work goals” that these companies require of fruit harvesters and pickers. Although they are paid the minimum wage, the conditions under which they work could be defined in practice as forced labor, and they are not paid overtime, receive incentive bonuses, or receive full employee benefits.
The least-skilled workers are the most vulnerable in Guatemalan agribusiness, especially in the palm oil industry, regarding piecework. As the ILO states: “To be fair and effective, piece-rate payment systems must be transparent, reward employees according to the difficulty and quality of their work and ensure that motivated workers can earn substantially more than the minimum.”[1]
CONDEG has also filed complaints with the Guatemalan Ministry of Labor and Social Welfare (MINTRAB), but so far there has been no sustained effort to investigate these complaints. The treatment of workers and job security are also issues that need to be addressed, as there are no procedures for prompt and professional attention. Manuel Pérez of CONDEG[2] recounts a recent event that shows the seriousness of the matter when he tells us that:
“…there was an accident, a palm frond fell on [a fruit picker’s] head, he cut his arm, and there was no one to pick him up. He had to endure many hours without care until someone thought to take him to the clinic.”
These types of situations are not isolated; they happen very frequently, and companies don’t really care about the job security of these employees. There is a lot of retaliation, abuse, and arrogance on the part of bosses, who mistreat these people, most of whom are illiterate and indigenous.
After several years of supporting palm oil workers, CONDEG supported the formation of a union (the first union in this sector in the country’s history).
The name of the union is SITRAREPSA, annexed and related companies; it was created within REPSA, an RSPO-certified company and a member of GREPALMA. The union’s formalization was finalized in September 2024, and its 25 members have already received credentials and legal status.
The union has a seven-person executive committee, comprising 10 leaders in total. However, the company does not recognize them, as at the end of December 2024, REPSA implemented a plan for all workers who resigned that month to receive full severance pay and then be rehired. Four union members resigned, and the company therefore states that the executive committee cannot be considered because most of its members have lost their jobs. Unfortunately, these corporate tricks are also very common; they play with workers’ dignity and livelihoods.
Another effort made by CONDEG was to introduce an ad-hoc labor policy proposal for workers in the palm oil production sector on September 24, 2024, to the Ministry of Labor and Social Development (MINTRAB).
After extensive discussion on the main problems of labor rights violations, it requested that concrete actions be taken to promote decent work. However, almost six months after submitting this document to the Ministry of Labor and Social Development (MINTRAB), no progress has been reported.
The struggle continues, and the field in which it takes place is unequal and unfair, but also very dangerous.
Let’s hope that the officials in charge can establish more favorable conditions for resolving the labor disputes that plague workers in this sector. And that the official bodies take responsibility to implement the national and international standards and convention to achieve decent work in for workers in the palm oil industry in Guatemala.
[1] https://www.ilo.org/resource/17-piece-rate-pay
[2] Interview to Manuel Perez 4 March 2025