FGV submits appeal to lift US restrictions on its palm oil

FGV noted the remediation plan aims to close identified gaps in its labour practices to align its operation with internationally recognised ethical labour standards.

PETALING JAYA: Agribusiness and food company, FGV Holdings Bhd, has submitted a petition to the US Customs and Border Protection (CBP) for the modification of the Withhold Release Order (WRO) on palm oil and palm oil products produced by the group.

The submission comes following the significant remediation efforts taken across FGV’s operations towards ensuring full labour rights and improved welfare for its workforce.

FGV has been working towards lifting an import ban on its palm oil and palm oil products in the United States after it was hit by a WRO by the US customs agency on Sept 30, 2020 due to allegations of forced labour on its estates.

In response, FGV implemented remedial measures to have the US ban lifted, including appointing a global independent consultant, LRQA (formerly known as ELEVATE), to conduct an assessment of the group’s operations against the 11 International Labour Organisation indicators of forced labour.

In a statement yesterday, FGV noted the remediation plan aims to close identified gaps in its labour practices to align its operation with internationally recognised ethical labour standards.

The remediation plan includes the strengthening of FGV procedures for recruitment of migrant workers, enhancement of infrastructure and housing facilities, updating the group-grievance reporting policies and procedures, as well as promoting workers’ right to freedom of association and facilitating the enjoyment of the right to join unions.

Another corrective measure taken is the reimbursement of recruitment fees to its migrant workers.

FGV has allocated a total of RM112mil for this purpose and has disbursed RM85.29mil of the money to reimburse 22,600 workers to date.

It also spent RM487mil to upgrade and construct new housing over 2018-2023 as well as enhancing Internet connectivity in remote areas.

Another RM605mil has been allocated for 2024-2026 to further enhance the infrastructures and housing facilities for workers, which includes enhancing workers’ access to Internet connectivity in its plantations in remote areas by installing satellite Internet facilities.

The planter noted it is also strengthening FGV’s grievance-reporting mechanism by updating its policies and procedures, establishing a grievance management committee and rolling out a third-party grievance channel, Suara Kami, that is accessible to all workers across FGV’s plantations and mills as well as allowing workers to join unions.

“These initiatives, which are also highlighted in FGV’s submission to CBP, reflect FGV’s seriousness in modifying the WRO.

“With the improvements and enhancements to its labour practices, it is FGV’s utmost hope that the petition will lead to the modification of the WRO by the US CBP,” it stated.

FGV added it remains steadfast in its commitment to promoting human rights as a fundamental pillar of the groups’ corporate values.

“The company will continue to advance its rigorous ethical standards and labour practices, ensuring the fair treatment and fulfilment of rights of all workers across its operations in the years to come.”

FGV slipped into the red in the first quarter ended March 31, 2024 with a net loss of RM13.49mil. Quarterly revenue declined by 1.09% to RM4.54bil from RM4.59bil a year ago