MARKET DEVELOPMENT
PNB engages with Sime Plantation to end labour issues
PNB engages with Sime Plantation to end labour issues
06.05.2022 (www.thestar.com.my) - KUALA LUMPUR: Top fund manager Permodalan Nasional Bhd (PNB) has been engaging with Sime Darby Plantation Bhd
on the steps taken by the world’s largest oil palm planter to solve its ongoing labour issues.
Sime Plantation is among the country’s palm and rubber-glove producers that have come under scrutiny over allegations of migrant worker abuse. Yet, the surge in palm oil prices has helped the company’s shares rally 40% this year, valuing PNB’s 56.4% holding at more than RM20.43bil.
The US Customs and Border Protection (CBP) in January said it would seize Sime’s palm oil and related goods as it has sufficient information to determine that the products were made using convicts, forced or indentured labour.
It has since taken steps to improve its labour rights policy, including co-operating with the US CBP and appointing an independent ethical trade consultant to assess its local facilities. Last week it submitted to the US CBP a “comprehensive report” which includes its domestic operations mapped against each of the International Labour Organisation forced labour indicators, and description of improved governance structures.
“We are encouraged by this development and the company’s commitment and efforts in resolving the ongoing labour issues and will nonetheless monitor developments closely,” PNB said. — Bloomberg