Sime Darby Plant continues to resolve WRO, labour shortage issues
KUCHING: Sime Darby Plantation Bhd (Sime Darby Plant) continues to work towards clearing its Withhold Release Order (WRO) issued by the US Customs and Border Protection (CBP) as well as matters pertaining to its labour shortages.
To recap, the US CBP issued the WRO on December 30, 2020 at all US ports of entry for all palm oil and related products produced by Sime Darby Plany based on presence of all 11 of the International Labour Organisation’s forced labour indicators in the company’s production process.
In regards to the WRO issue, the status of the assessment was still the same and currently the assessment was still on going.
Researchers with MIDF Amanah Investment Bank Bhd (MIDF Research) noted that the major factor that slow down the completion of the assessment is the inability for the team to go on the ground due to restrictions from the movement control orders (MCOs).
“Nonetheless, it is worth to note that, the interstate travel relaxation will help to accelerate the completion of the assessment,” it said in its review yesterday.
“On top of that it is worthwhile to note that Sime Darby Plant is working on continuous improvement programs in Malaysia, namely improving the group’s grievance mechanism; raising further awareness among the workers; and social dialogue – as a platform for the workers to raise any issues and concerns.”
To note, currently the group is planning to roll out this social dialogue platform across its operations in Malaysia.
Sime Darby Plant hopes that the Impactt team, which is based overseas, would be able to come to Malaysia to conduct estate visits as soon as possible. Currently, there is a 10-day quarantine period for overseas travellers that arrive in Malaysia.
In the meantime, the planter would be implementing initiatives such as setting up passport cabinets in the workers’ houses and appointing workers’ representatives.
SDP hopes to submit the assessment report on its palm operations in Malaysia to the US CBP by the first quarter of financial year 2022 (1QFY22).
In regards with the shortages of foreign workers, Sime Darby Plant will be amongst the destination of the 32,000 foreign workers which is arriving this month for plantation sector.
To recap, Datuk Zuraida Kamaruddin, Industries, Plantations and Commodities Minister, said some 32,000 foreign workers for the plantation sector will arrive in Malaysia in stages from the middle of this month.
AmInvestment Bank Bhd (AmInvestment Bank) understood that the first batch of workers may arrive in December 2021.
“Discussions are still ongoing among industry players on issues such as the party that will bear the cost of quarantine for the workers,” it opined.
“Currently, Sime Darby Plant is facing a labour shortage of 19 per cent or 6,000 workers. Annually, about 8,000 of Sime Darby Plant’s workers return home. Sime Darby Plant is recruiting local workers to help mitigate the shortfall in labour.”