KUALA LUMPUR, Nov 30 — FGV Holdings Bhd has frozen the recruitment of workers from external contractors with immediate effect after it was sanctioned by the Roundtable on Sustainable Palm Oil (RSPO) for breaching its certification criteria.
The Felda-owned company said in a statement today that the freeze will only be lifted when the company is satisfied beyond any doubt that contractors are strictly adhering to all its internal policies, guidelines and standard operating procedures.
FGV will also revise the benefits enjoyed by its plantation workers and will absorb the costs of basic necessities, including food supplies given to its workers.
“The welfare of all our employees is of paramount importance to FGV and to me personally. Our plantation workers are the backbone of FGV and their contributions are invaluable.
“We must and will treat all our employees fairly and equally, regardless of nationality,” said FGV chairman and interim chief executive officer Datuk Wira Azhar Abdul Hamid in the statement.
RSPO sanctioned FGV after finding 25 breaches of its certification criteria, such as alleged forced labour, trafficking in workers and providing dire living conditions for them.
FGV, formerly known as Felda Global Ventures Holdings Bhd, said it will immediately commence investigations into RSPO’s findings.
“As has been rightly stated by the RSPO, such practices are illegal and FGV takes a very serious view of this finding.
“FGV will respond directly to the RSPO CP, and commits to progressive updates which will be published on its website,” it said, referring to the international body’s complaints panel.
The company has also pledged to negotiate with relevant stakeholders to directly employ workers where possible to avoid displacing existing workers who are already contracted to FGV through third parties.
These negotiations will involve their current employers and the government, it said.
“It would be in the best interest of our foreign contract workers if they are able to come under our payroll.
“However, FGV is cognisant of the legal and procedural hurdles but we will nevertheless endeavour to do our best,” Azhar said.
Of the other findings by the RSPO, FGV said it is taking immediate measures to address all the issues raised.
“The RSPO is an important stakeholder and FGV is committed to full compliance with all its Principles and Criteria.”
The investigation by RSPO was sparked by a story in 2015, which found forced labour, human trafficking and other labour abuses in Felda-owned plantations.
