21/04/2022 (The Edge Markets), Kuala Lumpur - World's largest producer of certified sustainable palm oil Sime Darby Plantation Bhd (SDP) said one of the issues surrounding remediation fees is that there is no information available on what the standard components should be.

“It is purely based on interviews conducted by the independent assessor and the assessor's conversation.

“We do not really have component breakdowns. It is a system that is commonly utilised for situations like this, called universal payment, that we end up paying and it is internationally accepted.

“Be mindful that these numbers are not independently validated,” SDP chief financial officer Renaka Ramachandran told a Zoom webinar titled “Ban (Findings) Issued by the US CBP on Sime Darby Plantation — Sharing Our Experience Briefing” that was hosted by the Malaysian Palm Oil Council.

She said this when asked by a member of the audience on "what were the methods and criteria used to arrive at the amount of reimbursement", and “how much of the recruitment fees per worker per nationality have been reimbursed".

Renaka further noted that SDP currently employs about 15,000 active foreign workers and has reimbursed most of them.

“We have paid everyone except for less than a hundred who are still getting their bank accounts sorted out,” she said.

As for inactive workers who need to be paid, which total about 19,000, Renaka said SDP will start payments on the completion of validation by local legal counsel in their respective countries after they substantiate the documentation.

She said the method and sum of payment were arrived at by SDP’s independent assessor after conducting interviews on a sample basis from employees of each country.

The reimbursement ranges from RM1,100 for an Indonesian worker, up to about RM5,400 for a Nepalese worker, added Renaka.

SDP chief risk officer Gajani Nayagi Seeveneserajah, who was also present, said the company now undertakes open tenders for agents in source countries, during which they will then go through a very rigorous screening process as part of SDP’s ethical recruitment procedures.

“We have our ethical recruitment specialists who assist us with those screenings as well. These include site agents who will be speaking on the ground and ultimately is about taking consequence management with agents who do not comply with the stringent policies right now,” she said.

In terms of ensuring SDP’s contractors comply with legal requirements, especially on issues such as minimum wage, Renaka said the company will do spot checks on their monthly payslips and passports.

“They (contractors) are expected to show us the employees’ payslips. For passports, (we will check) whether they are holding them at all times. A lot of these contractual workers actually reside within our estates during the period of work and they use our accommodation,” she said.

Gajani added that the contractors will need to provide a list of the workers, as well as a copy of their documentation before they enter SDP sites.

“Upon validation, we will allow these workers into the sites. Our sites’ security personnel will check the passports and work permits of workers who come in on a daily basis,” she said.

https://www.theedgemarkets.com/article/no-standards-what-remediation-fees-should-comprise-says-sdp