FGV against CBP palm oil products ban
KUALA LUMPUR: FGV Holdings Bhd (FGV) has expressed its disappointment in response to the Withhold Release Order (WRO) issued by the United States Customs and Border Protection (CBP) against palm oil and palm oil products made by FGV.
“FGV would like to emphasise that all issues raised have been the subject of public discourse since 2015 and FGV has taken several steps to correct the situation,” it said in a statement yesterday, adding that its efforts are well documented and available in the public domain.
“FGV is disappointed that such decision has been made when FGV has been taking concrete steps over the past several years in demonstrating its commitment to respect human rights and to uphold labour standards.
“As mentioned in our statement dated September 26, 2020, various efforts have been carried out by FGV in honouring such commitment.”
The efforts include FGV strengthening its procedures and processes in the recruitment of migrant workers, whereby FGV has established four OneStop Centres in Malaysia and in source countries namely in India and Indonesia, as part of its efforts to strengthen the pre-departure and post-arrival orientation programmes for our migrant workers.
“Through these orientation sessions, our migrant workers are briefed on various matters including the terms of their employment, job scope and nature of work, rights and responsibilities, as well as benefits and entitlements,” it said.
“FGV has also adopted its guidelines and procedures for the Responsible Recruitment of Migrant Workers in 2019 in accordance with international standards and will continue to strengthen the document.
“Under the Guidelines, FGV is committed to paying official costs associated with the recruitment of migrant workers, which include airfare and costs for work permit, visa, medical check-up and insurance. FGV has also revised its contract with recruitment agencies to require them to ensure that no fees are charged on the workers.”
FGV also underscored that it is not involved in any recruitment or employment of refugees. Effective 2020, FGV recruits its migrant workers mainly from India and Indonesia through legal channels and processes recognised and approved by the authorities of Malaysia and the source countries.
As of August 2020, FGV has 11,286 Indonesian workers and 4,683 Indian workers, who together, form the majority of FGV’s plantation workforce. Furthermore, FGV does not hire contract workers and all workers are employed directly by FGV.
“FGV does not practice the retention of its workers’ passports and has installed a total of 32,250 safety boxes throughout all its 68 complexes, as an option for migrant workers to keep their passports safely,” it highlighted.
“In fulfilling the rights of workers to adequate housing, FGV has over the past three years, invested approximately MYR350 million to upgrade housing facilities for its workers by constructing new residences in our plantations all over the country.
“FGV respects workers’ right to healthcare through the benefits provided, which cover annual expenses for outpatient care and an unlimited allocation for inpatient treatment.”
Mindful that human rights and sustainability standards must be fulfilled throughout our supply chain, FGV has adopted a Supplier Code of Conduct (SCOC), outlining the principles and standards relating to sustainability; business ethics and integrity; safety, health and environment; and labour, with which our suppliers and vendors are required to comply.
Any supplier or vendor that do not comply with the SCOC will be subjected to FGV’s Supplier Delinquency Guidelines, with the possibility of being suspended or terminated and blacklisted should they fail to demonstrate willingness to rectify gaps in their practices.
“Since August 2019, FGV been communicating with CBP through our legal counsel and have submitted evidence of compliance of labour standards as committed by FGV. It will continue to engage with CBP to clear FGV’s name, and is determined to see through its commitment to respect human rights and uphold labour standards.”
FGV would like to emphasise that all issues raised have been the subject of public discourse since 2015 and FGV has taken several steps to correct the situation.
FGV