KUALA LUMPUR – FGV Holdings Berhad (FGV) has reimbursed a total of RM85.29 million in recruitment fees to its migrant workers, as part of efforts to amend a US blockade of its palm oil and palm oil products.
The amount was paid to 22,600 foreign workers and is part of the RM112 million the company has allocated for this purpose, in seeking to modify a withhold release order (WRO) by the US Customs and Border Protection (CBP) imposed on FGV in September 2020.
The reimbursements are part of its “significant remediation efforts” to its operations to comply with the order issued that cited infringements of labour rights and workers’ welfare.
FGV in a statement said it had submitted its petition to the CBP on June 30.
“Over the years, as part of the steps to address the WRO, FGV implemented a comprehensive remediation plan to close identified gaps in its labour practices and to align its operations with internationally recognised ethical labour standards.
“Among a number of corrective measures, a key component of FGV’s remediation plan involved reimbursing recruitment fees to its migrant workers.
“FGV has allocated a total of RM112 million for this purpose and has spent RM85.29 million to reimburse 22,600 workers to date,” it said.
The company had appointed an independent third-party, LRQA formerly known as Elevate, to assess its palm oil operations against the relevant labour standards by the International Labour Organization (ILO) on forced labour.
It had also appointed a legal counsel, Crowell & Moring, to advise it on requirements stipulated by US and international law.
Other aspects of its remediation plan includes strengthening FGC’s procedures on migrant worker recruitment to be inline with ethical principles.
It has also enhanced its housing facilities for migrant workers, spending RM487 million between 2018 and 2023 to upgrade and construct new housing as well as enhancing internet connection in remote areas.
“An additional RM605 million is further allocated for 2024-2026 to further enhance infrastructure and housing facilities for workers. This also includes enhancing workers’ access to internet connection at estates in remote areas by installing internet satellite facilities.”
Additional remedial actions include strengthening FGV’s grievance mechanism by updating its grievance policies and procedures, establishing a Grievance Management Committee and rolling out a third-party grievance channel, Suara Kami, that is accessible to all workers across FGV’s estates and mills, it said.
Additionally, the company said it will promote workers’ right to freedom of association and facilitate the right to join unions through collaboration with the National Union of Plantation Workers (NUPW).
FGV said it highlighted these initiatives in its submission to CBP to “reflect FGV’s seriousness in modifying the WRO”.
“It is FGV’s utmost hope that the petition will lead to the modification of the WRO by the US CBP. – July 10, 2024