FGV Holdings Bhd released a statement earlier today expressing its disappointment regarding 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, following allegations of forced and child labour.
According to an article by Free Malaysia Today, CBP said the directive followed a year-long investigation that revealed forced labour indications, including restriction of movement, physical and sexual violence, withholding of wages and excessive overtime.
According to FMT, the investigation also raised concerns that ‘forced child labour is potentially being used in FGV’s palm oil production process’.
Following that, FGV’s claimed that it has been taking concrete steps over the past several years demonstrating its commitment to respect human right and uphold labour standards.
From the statement, FGV noted that the group adopted its guidelines and procedures for the responsible recruitment of migrant workers in 2019 in accordance with international standards.
Under the guidelines, the group is committed to paying official costs associated with the recruitment of migrant workers, which includes airfare, costs for work permit, visa, medical check-up and insurance.
The group also mentioned that it is not involved in any recruitment or employment of refugees, effective 2020. Most of its migrant workers are mainly from India and Indonesia and are recruited through legal channels and processes recognised and approved by the authorities of Malaysian and the respective source countries.
Apart from that, the group stressed that it does not practice the retention of its workers’ passports and provides adequate housing to the workers, spending approximately RM350 mil to upgrade its workers’ housing facilities.
In light of that, FGV has been communicating with CBP, since August 2019, through FGV’s legal counsel and have submitted evidence of compliance of labour standards as committed by FGV.
From its statement, FGV expressed its plan to continue to engage with CBP to clear its name and its determined to see through its commitment to respect human rights and uphold labour standards. – Oct 1, 2020
