Sime Darby Plantation Berhad makes several sweeping changes and improvements to its governance structures, policies, and procedures in relation to the forced labour allegation the plantation giant was accused of by the US Customs and Border Control recently.,
Towards this end, among the actions SDP will take is firstly to reimburse recruitment fees to its current foreign workers. It has also established an improved Responsible Recruitment Procedure and implemented new processes to enable better dialogue with workers. Group Managing Director Mohamad Helmy Othman Basha said that since the imposition of the Withhold Release Order (WRO) by the United States Customs and Border Protection in December 2020, the group has undertaken comprehensive audits both internally and with independent organisations.
It added that the audits were unavoidably delayed as the Malaysian government had imposed strict nationwide movement controls over several months in 2021, to contain the spread of the Covid-19 virus.
Mohamad Helmy said: “This entire exercise has certainly been a learning experience for us. SDP has always been proud of having industry-leading policies and practices. However, over the last year, we have learned that there is always room for introspection and review, that improvement is a continuous journey. We have spent a long hard year auditing, examining, and occasionally, unearthing entrenched practices that needed to be improved or changed.
The Board and Management made the decision that we would face this almost existential challenge head-on. Every gap we have found has been or is being closed, every lapse in governance is being or has been addressed, any improvement needed has been or is being made.
Apart from the financial support, the group has also implemented new and significant governance and structural changes to ensure that worker welfare and wellbeing is improved and entrenched within the organisation. A new Environmental, Social, and Governance (ESG) scorecard, and accountability mapping process have been implemented. It has also developed new platforms and channels for dialogue with our workers, to improve existing communications, to build trust, and ensure they are heard.
In November 2021, after reimbursement amounts were calculated by an independent third party, the Board approved a provision of RM82.02 million to reimburse recruitment fees to current and past foreign workers. The reimbursement amounts were calculated by taking into account the typical foreign worker reported recruitment fees and related costs by nationality. SDP will reimburse 15,078 current foreign workers an aggregate sum of RM38.55 million.
Additionally, SDP is setting aside a sinking fund amounting to RM43.47 million to reimburse 19,565 former foreign workers. All reimbursements will be paid in a single lumpsum payment to foreign workers. Current foreign workers will be informed of the reimbursement details in writing and receive their monies. They will also have full access to various channels of communication to raise any questions or concerns. The 15,078 workers come from
Indonesia, India, Bangladesh, Nepal, Myanmar, Cambodia, Sri Lanka, and Pakistan.
SDP had committed to ensuring zero recruitment fees since 2017, with the implementation of its Human Rights Charter. However, in light of the fees foreign workers have had to pay, unknown to us and despite the existence of the zero-fee policy, SDP has revised and developed a more robust system covering the entire process of appointing recruitment agents, working with independent migrant worker rights specialist, Mr Andy Hall.
As for the recruitment process, this has been revised, the new policy places heavy emphasis on the appointment of suitable recruitment agents via open tenders, with appropriate checks and balances to ensure workers are no longer exploited or encumbered with recruitment fees.
Additionally, a new Social Welfare & Services (SWS) department has been established. This dedicated team will be responsible for overseeing the implementation of policies and procedures related to the well-being and safety of workers, and compliance with internationally recognised best practices.
SDP adds that it will proactively report its human rights progress through the UK Modern Slavery Act Statement and adhere to the Universal Declaration of Human Rights and the United Nations Guiding Principles on Business and Human Rights.
