ELECTRONIC manufacturing services (EMS) provider SKP Resources Bhd is bold enough not to pay the costly price of throwing the ESG (environmental, social and governance) caution to the wind. 

With the EMS industry being in the spotlight over various forms of forced labour allegations, SKP has proactively reached out and held a series of positive and constructive discussions with independent migrant worker rights specialist Andy Hall with regard to the welfare of migrant workers employed by the company. 

In the name of transparency, SKP updated its stakeholders and investors yesterday (Dec 15) on progress of its discussion with the London-born activist: 

• SKP has operated based on a zero cost ethical recruitment fee policy for its migrant workers since 2018; 
• SKP will immediately carry out a remediation program with respect to repayment of recruitment fees previously paid by its migrant workers to agents or other parties; 
• SKP will commission an independent third-party social compliance audit by April 2022, the specifics of which shall be agreed by SKP and Hall (the findings of the audit shall be shared transparently with Hall); and  
• SKP has and always will place upmost importance on the welfare and well-being of all its workers, both foreign and local. 

Shares of SKP Resources seem to react positively to such an engagement given stock price of companies which rely on labour-intensive workforce has proven to be sensitive to any untoward accusations of labour abuses as evident from the EMS, glove and plantation industries. 

At 10.31am, SPK Resources’ share price firmed 5 sen or 3.11% to RM1.66 with 2.8 million shares traded, thus valuing the company at RM2.59 bil. 

“SKP has indeed shown urgency and demonstrated their ability to put in place a fast, well-organised, professional and effective action plan in response to the concerns I have raised,” shared Hall in a joint statement issued yesterday (Dec 15). 

“I am confident this action plan when implemented can significantly benefit the migrant workers of the company. SKP’s response and commitment to this issue is commendable.” 

Said SKP Resources’ executive director Ivan Gan Poh San who was instrumental in engaging Hall soon after the latter lodged a complaint with the Department of Labour Peninsular Malaysia (JTKSM) against SKP’s wholly-owned subsidiary SPI Plastic Industries (M) Sdn Bhd over overtime and non-reimbursement of workers’ recruitment fees: 

“We are thankful to Hall for constructively highlighting some remaining issues of concern that he has identified through his work. Our discussions together have been fruitful and his insights have shed some additional light on how to improve and further enhance the welfare and wellbeing of our migrant workers.” 

Acknowledging that there have been gaps in the enforcement of the company’s zero-cost recruitment free policy implemented since 2018, Gan said SKP Resources will initiate a remediation programme with respect to the repayment of recruitment fees previously paid by its migrant workers.  

“This remediation will also be verified by the third party audit we have agreed to commission in April 2022 and which we shall share with Hall,” he added. – Dec 16, 2022 

https://focusmalaysia.my/skp-is-all-out-to-avoid-the-violating-esg-at-your-own-peril-trap/