FGV submits petition to US Customs and Border Protection for modification of palm oil import ban
09/07/2024 (Malay Mail), Kuala Lumpur - FGV Holdings Berhad (FGV) announced that it has submitted a petition to the United States Customs and Border Protection (CBP) seeking the modification of the Withhold Release Order (WRO) imposed on its palm oil and palm oil products since September 2020.
The submission, made on June 30, 2024, follows significant remediation efforts by FGV to ensure full enjoyment of labour rights and improve the welfare of workers across its operations, according to national news agency Bernama.
FGV appointed LRQA (formerly known as Elevate) as an independent third-party to assess its palm oil operations against relevant labour standards, particularly the International Labour Organisation (ILO) Indicators of Forced Labour.
The company also engaged Crowell & Moring as legal counsel to advise on requirements stipulated by US and international law to address the WRO.
In its efforts to address the WRO, FGV implemented a comprehensive remediation plan aimed at closing identified gaps in its labour practices and aligning its operations with internationally recognised ethical labour standards, Bernama reported.
A key component of this plan involved reimbursing recruitment fees to migrant workers, with FGV allocating RM112 million for this purpose and spending RM85.29 million to reimburse 22,600 workers to date.
The remediation plan includes:
• strengthening of FGV’s procedures for the recruitment of migrant workers in line with ethical recruitment principles and standards, evidenced by enhancing due diligence measures in the appointment of recruitment agencies.
• enhancing infrastructure and housing facilities. During the time frame 2018-2023, a total of RM487 million was spent 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 the infrastructures and housing facilities for workers. This also includes enhancing workers’ access to internet connection at estates in remote areas by installing internet satellite facilities.
• 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.
• promoting workers’ right to freedom of association and facilitating the enjoyment of the right to join unions through collaboration with the National Union of Plantation Workers (NUPW).
FGV’s submission to CBP underscores its commitment to addressing the 11 ILO Indicators of Forced Labour. The company expressed hope that the improvements and enhancements to its labour practices will lead to the modification of the WRO.