FGV Holdings Bhd (FGV) has launched a six-month initiative to reimburse recruitment fees to its former migrant workers who joined the company after September 2018. This move is seen as part of FGV’s efforts to be removed from a US agency list that resulted in a ban on its products entering the US.
In 2020, the US Customs and Border Protection (CBP) issued a withhold release order (WRO) against FGV following allegations of forced labour. The WRO came after a year-long investigation that uncovered indicators of forced labour, such as withholding of wages, debt bondage, and excessive overtime.
FGV’s social media post advised eligible workers to apply for reimbursements before Dec 31, urging them to avoid intermediaries or agents to prevent fraud.
To date, FGV has reimbursed RM72.2 mil to nearly 20,153 current migrant workers and RM1.77 mil to 415 former migrant workers.
The company has implemented a comprehensive recovery plan to mitigate the risk of forced labour including allocating RM605 mil for new housing construction and improvements to worker living conditions.
Moreover, FGV has set aside RM22.2 mil to enhance access to safe drinking water and RM15 mil to improve internet access particularly in remote areas.
Earlier this year, FGV announced its intention to submit a petition to the CBP by the end of June to seek modification of the WRO.
A spokesperson confirmed that the decision to reimburse recruitment fees was made after an independent review revealed that migrant workers might have paid these fees and related costs to secure employment with FGV.
Furthermore, the company is offering reimbursements to former workers from Indonesia, India, and Bangladesh who were recruited on or after September 1, 2018, as part of its commitment to responsible recruitment practices.
“Any former employee at FGV in Malaysia who previously paid recruitment fees to agents, sub-agents, or brokers in their home country may be eligible for reimbursement,” the spokesman said, adding that this included workers who had left without resigning, or absconded.
FGV specified two categories of eligible workers: those employed on or after Sept 1, 2018, who were still employed as of Dec 31, 2022, and left before March 15, 2023; and those recruited on or after Jan 1, 2023, who left before Nov 31, 2023. – July 3, 2024
Main photo credit: FGV
