Audit: No systemic forced labour at V.S. Industry

KUALA LUMPUR: V.S. Industry Bhd said PwC Consulting Associates (M) Sdn Bhd has completed its independent third-party review of the company’s labour practices and has not identified evidence of systemic forced labour practices identified within the group.

In a statement, the electronics manufacturing services provider said PwC Consulting’s work was undertaken together with a labour rights consultant who concurs with this finding.

It said that the independent Review was based on the 11 International Labour Organization (ILO) indicators of forced labour and the scope extended to entire workforce of its Malaysia operations comprising both local and migrant workers, as well as workers hired through the Recalibration Programme.

VS said for four months since March 2022, PwC Consulting conducted site visits across 19 VS’ factories and hostels and held formal interviews and focus group discussions (FGD) with approximately 7% of VS’ foreign workforce in Malaysia as well as a number of local workers. Ad hoc discussions were also undertaken with VS’ workers.

“During the interview and FGD process, PwC Consulting utilised independent translators i.e. VS’ translators were not used.

“Further, only PwC Consulting and the labour rights consultant were present during the interviews. That is, no one from the group was present during any of the interviews or FGDs,” it added.

Managing director Datuk S.Y. Gan said the review was an important exercise for VS to help determine its labour practices from an independent perspective.

“We are pleased with the findings by PwC Consulting as they are consistent with our commitment in safeguarding the legitimate rights and interests of all our employees, both local and migrant workers,” he said.

Gan noted that PwC Consulting did identify gaps and areas for improvement primarily relating to recruitment fees, overtime, accommodation and effective communication.

“The Board has promptly acknowledged these matters and took immediate remedial actions,” he said, adding that it had already fully reimbursed the recruitment fees paid by workers who joined prior to 2017.

“As for the remaining issues, some have been resolved, while others are in the midst of being remedied. The report also concluded that VS complied with the requirements of the Recalibration Programme and our existing workforce no longer has workers hired through third-party subcontractors,” Gan said.

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V.S. Industry , PwC , forced labour , S.Y. Gan


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