KUALA LUMPUR: FGV Holdings Bhd has submitted its petition to the US Customs and Border Protection (CBP) for the modification of the withhold release order (WRO) that was issued in September 2020 on its palm oil and palm oil products. 

The group said the submission comes after significant remediation efforts across its operations towards ensuring full enjoyment of labour rights and improving the welfare of workers. 

"FGV appointed LRQA, formerly known as ELEVATE, as an independent third-party to assess FGV's palm oil operations against the relevant labour standards, in particular the International Labour Organisation (ILO) indicators of forced labour.  

"FGV also appointed Crowell & Moring as its legal counsel to advise the group on requirements stipulated by US and international law to address the WRO," it said in a statement. 

Over the years, as part of the steps to address the WRO, FGV said it had implemented a comprehensive remediation plan to close identified gaps in its labour practices and to align its operations with internationally recognised ethical labour standards. 

Among a number of corrective measures, a key component of FGV's remediation plan involved reimbursing recruitment fees to its migrant workers.  

FGV allocated a total of RM112 million for the purpose and had spent RM85.29 million to reimburse 22,600 workers to date. 

Additionally, FGV said it strengthened its procedures for the recruitment of migrant workers by enhancing due diligence measures in the appointment of recruitment agencies. 

The group also investing RM487 million from 2018 to 2023 to upgrade and build new housing, improve internet connectivity in remote areas.  

An additional RM605 million was allocated for 2024-2026 to further enhance infrastructure and housing, including installing satellite internet facilities at estates. 

Furthermore, FGV enhanced its grievance mechanism by updating policies, establishing a Grievance Management Committee, and launching a third-party grievance channel, Suara Kami, accessible to all workers. 

The group also promoted workers' freedom of association and facilitating union membership through collaboration with the National Union of Plantation Workers (NUPW). 

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

"FGV's submission also sets out additional guidance and advice from the group's advisors and consultants that demonstrates FGV's efforts in addressing the 11 ILO indicators of forced labour.  

"With the improvements and enhancements to its labour practices, it is FGV's utmost hope that its petition will lead to the modification of the WRO by the US CBP," the group noted. 

FGV said it remains steadfast in its commitment to promoting human rights as a fundamental pillar of its corporate values.  

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

As part of its group sustainability policy, FGV said it is committed to promoting inclusive economic growth, respecting human rights, and protecting the environment. 

This is to transform the group into a responsible and sustainable organisation that champions the sustainability agenda.

https://www.nst.com.my/business/corporate/2024/07/1072777/fgv-submits-petition-us-customs-modify-wro