KUALA LUMPUR: FGV Holdings Bhd has frozen all new recruitment of workers from external contractors across its operations with immediate effect.
It said the ban would only be lifted when the company was satisfied beyond any doubt that contractors were strictly adhering to all of FGV’s internal policies, guidelines and standard operating procedures.
“FGV will also revise with immediate effect, the benefits enjoyed by its plantation workers and will absorb the costs of basic necessities, including food supplies given to its workers.
“The welfare of all our employees is of paramount importance to FGV and to me personally,“ Chairman and Interim Chief Executive Officer Datuk Wira Azhar Abdul Hamid (pix) said in a statement yesterday.
He was responding to findings by the Complaints Panel (CP) of the Roundtable on Sustainable Palm Oil (RSPO) that showed FGV needed to improve its recruitment and employment processes.
The world palm oil certification body has cited FGV for alleged forced labour and other unethical labour practices that breach Malaysian and international labour laws.
Azhar said FGV’s employees were the company’s backbone and their contributions were invaluable.
“We must and will treat all our employees fairly and equally, regardless of nationality,“ he explained.
He also said that to avoid displacing existing workers who were already contracted to FGV through third parties, the company pledged to negotiate with relevant stakeholders to directly employ these workers where possible and these negotiations would involve their current employers and the Malaysian government.
“It would be in the best interest of our foreign contract workers if they are able to come under our payroll. However, FGV is cognisant of the legal and procedural hurdles but we will nevertheless endeavour to do our best,“ Azhar added.
According to him, the company is taking immediate measures to address all the issues raised by the RSPO CP as expeditiously as possible.
“The RSPO is an important stakeholder and FGV is committed to full compliance with all its principles and criteria. We are a responsible company, built on a heritage of sustainable development, bringing economic uplift and social mobility to thousands of smallholders.
“FGV is reviewing and where necessary revising, all communication materials and training programmes for workers, especially with regard to their terms of employment, whistle-blower protection and health & safety procedures. FGV will also engage an independent third party to train workers on its human rights policy,“ he added.
With respect to the finding that the company had outsourced its foreign workers to external contractors, FGV has immediately started investigations into the matter.
“As has been rightly stated by the RSPO CP, such practices are illegal and FGV takes a very serious view of this finding,“ he said, adding that it would respond directly to the RSPO CP and was committed to progressive updates that would be published on its website.
Azhar also noted that FGV had in late 2017 committed RM300 million to improve housing facilities for its plantation workers. The work in this area is still on-going.
“We will expedite completion of this work, as worker housing must be a priority for FGV,“ he said.
FGV established a Transformation Office in June 2018 to address several issues that have affected operational performance.
When planned process improvements were implemented, workers would also be able to verify their compensation accurately, the company said. — Bernama
