FGV Holdings Bhd today said it is engaging the US authorities over the ban on its palm oil products over allegations of forced labour in its production process.

FGV Holdings said it is disappointed with the US Customs and Border Protection’s (CBP) decision, which follows despite its efforts over the years to uphold labour standards.

The CBP said yesterday the ban was a result of a year-long investigation which revealed forced labour indicators, including restriction of movement, physical and sexual violence, withholding of wages and excessive overtime.

“FGV would like to emphasise that all issues raised have been the subject of public discourse since 2015 and FGV has taken several steps to correct the situation.

“FGV’s efforts are well documented and available in the public domain,” it said in a statement today.

The company said it has been taking concrete steps to demonstrate its commitment to respect human rights and to uphold labour standards.

The world’s largest crude palm oil producer has been communicating with its legal counsel since August 2019 and has submitted evidence of compliance of labour standards.

Engagements with the CBP will continue to clear its name and to see through commitments to respect human rights and uphold labour standards, it said.

The company reiterates that it does not tolerate any form of human rights infringement or criminal offence in its operations.

FGV also outlined its efforts to honour its commitments.

This includes strengthening procedures and processes in the recruitment of migrant workers; adapting guidelines and procedures for the responsible recruitment of migrant workers in accordance with international standards and pioneering the implementation of the electronic wallet (e-wallet) cashless payroll system for its plantation workers.

It also denies employing refugees or retaining workers’ passports as it has installed 32,350 safety boxes in its 68 complexes for safekeeping of the document.

The company has also spent RM350 million over the last three years to upgrade housing facilities for its workers in its plantations.

Healthcare benefits which cover annual expenses for outpatient care and an unlimited allocation for inpatient treatment are also provided.

It added that attention is paid to allegation of physical or sexual violence as well as intimidation or threats.

The company is also a member of the US-based Fair Labour Association (FLA), a collaborative effort of socially responsible companies, colleges and universities, and civil society organisations, which create lasting solutions to abusive labour practices. – October 1, 2020.